Indirect Tax Laws and Practice · Place of Supply
Place of Supply of Goods Supplied on Board a Conveyance
Updated 11 October 2026 · Fact-checked
When goods are supplied on board a conveyance such as a vessel, aircraft, train or motor vehicle, the place of supply is the location at which the goods are taken on board. This is section 10(1)(e) of the IGST Act. Find where the goods were loaded, then compare that State with the supplier's State.
Understand Supply of Goods on Board a Conveyance
Section 10 of the IGST Act decides the place of supply of goods when the goods are not imported or exported. The place of supply decides whether the supply is intra-State (CGST + SGST/UTGST) or inter-State (IGST). So the rule matters for tax.
The general rule in section 10(1)(a) looks at where the movement of goods ends. That does not work well for a snack sold on a train. The train keeps moving through many States. The buyer eats the snack in whichever State the train happens to be in. Delivery is also hard to pin down.
So section 10(1)(e) gives a special rule. Where goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply is the location at which such goods are taken on board. The test looks at loading, not at where the sale happens or where the journey ends.
This rule is only about goods. Services supplied on board a conveyance fall under section 12(10) in domestic cases. That rule uses the first scheduled point of departure of the conveyance. Do not mix the two.
Once you know the place of supply, compare it with the location of the supplier. If both are in the same State, the supply is intra-State. If they differ, it is inter-State.
Key rules to remember
- Goods on board a conveyance
- Place of supply = location at which the goods are taken on board
- Section 10(1)(e), IGST Act. Applies to a vessel, aircraft, train, motor vehicle and similar conveyances.
- Services on board (contrast)
- Place of supply = location of the first scheduled point of departure of the conveyance
- Section 12(10). Applies to services, not goods, where supplier and recipient are in India. Do not use it for goods.
- Nature of supply
- Place of supply in same State as supplier's location → intra-State; otherwise → inter-State
- Use the place of supply, not the place of consumption, to choose CGST + SGST/UTGST or IGST.
- Scope of section 10
- Section 10 applies to goods other than goods imported into, or exported from, India
- Imports and exports are dealt with by a different section of the IGST Act.
How to solve Supply of Goods on Board a Conveyance questions
Use this method for any question on goods sold or supplied on board a train, flight, ship or bus.
- 1Check that the supply is of goods, not services. Food and packaged items are goods. A ticket or an entertainment service is not.
- 2Check that the goods are not imported into or exported from India. If they are, section 10 does not apply.
- 3Confirm the goods are supplied on board a conveyance: vessel, aircraft, train or motor vehicle.
- 4Find the location at which the goods were taken on board. Ignore where they were sold, eaten or where the journey ends.
- 5State the place of supply as that location, citing section 10(1)(e) of the IGST Act.
- 6Compare that State with the supplier's location. Same State means intra-State; different State means inter-State.
- 7Name the tax: CGST + SGST/UTGST for intra-State, IGST for inter-State. Then state the conclusion clearly.
Quickest way: Loading-point test
When to use it: Use when an MCQ gives a journey with several States and asks for the place of supply of goods sold on board.
- Underline the words 'taken on board' or 'loaded' in the question.
- Pick the State of that loading point. Ignore the route and the destination.
- Compare it with the supplier's State to choose IGST or CGST + SGST.
- If the question says 'services', switch to the first scheduled point of departure rule.
Common mistakes in Supply of Goods on Board a Conveyance
Taking the destination of the journey as the place of supply.
Students carry over the general rule of section 10(1)(a), which looks at where movement terminates.
Fix: For goods on board a conveyance, always use the location where goods are taken on board.
Using the place where the passenger buys or consumes the goods.
The conveyance is moving, so students pick the State it is passing through at the time of sale.
Fix: The sale point is irrelevant. Only the loading point counts.
Applying the first scheduled point of departure rule to goods.
Section 12(10) sounds similar and also deals with conveyances.
Fix: Section 12(10) is for services. Goods follow section 10(1)(e). Check the nature of supply first.
Applying section 10 to goods that are imported or exported.
Students forget the opening words of section 10(1).
Fix: Section 10 covers goods other than those imported into, or exported from, India.
Stopping at the place of supply and not stating IGST or CGST + SGST.
The question seems to ask only for the place.
Fix: Add the comparison with the supplier's location and name the tax. This earns the final mark.
Worked examples
Example 1
A catering company located in Maharashtra loads packaged food and beverages onto a train at Nagpur (Maharashtra). The train runs from Nagpur to Chennai via Telangana and Andhra Pradesh. The food is sold to passengers while the train is in Telangana. Determine the place of supply and the nature of supply.
Show the solution
- The supply is of goods (packaged food and beverages), supplied on board a train. Section 10(1)(e) of the IGST Act applies.
- The place of supply is the location at which the goods are taken on board. They were taken on board at Nagpur, so the place of supply is Maharashtra.
- The fact that the sale happens in Telangana is irrelevant.
- The supplier is located in Maharashtra and the place of supply is Maharashtra. Both are in the same State.
Answer: The place of supply is Maharashtra. The supply is intra-State, so CGST and SGST are levied.
Example 2
An airline caterer located in Delhi loads duty-free-neutral packaged snacks onto a domestic aircraft at Bengaluru (Karnataka) for sale on a flight from Bengaluru to Kolkata. The snacks are sold in flight. Determine the place of supply and whether CGST + SGST or IGST applies.
Show the solution
- The snacks are goods supplied on board an aircraft within India. Section 10(1)(e) applies.
- The place of supply is where the goods are taken on board, which is Bengaluru. So the place of supply is Karnataka.
- The supplier's location is Delhi. Delhi and Karnataka are different States.
- When the supplier's location and the place of supply are in different States, the supply is inter-State.
Answer: The place of supply is Karnataka. The supply is inter-State, so IGST is levied.
Exam tips
- Read the question for the loading point. Extra details such as the route, the sale point and the destination are usually distractors.
- In MCQs, watch whether the item is goods or a service. Goods use the on-board loading point; services use the first scheduled point of departure under section 12(10).
- In written answers, quote section 10(1)(e) of the IGST Act and state the conclusion on intra-State or inter-State supply.
- Check the word 'imported' or 'exported' in the facts. If the goods are exported, section 10 does not apply.
Practice questions from Place of Supply
- Deccan Elevators (Pune) supplies a lift to Meridian Hotels Ltd, a registered person in Hyderabad, Telangana. The lift is shipped in parts to…
- A Bengaluru supplier sells a packaged generator to an unregistered individual and ships it to Kochi. The invoice records the buyer's address…
- Anita Mehra, an unregistered individual, buys a refrigerator from a registered dealer in Surat, Gujarat, and the dealer arranges delivery to…
- Veda Engineering, Pune, supplies a turbine to Nilgiri Power Ltd, a registered person in Coimbatore, Tamil Nadu. The turbine is dispatched fr…
- Anand Distributors, Ahmedabad, sells a consignment of tiles to Ravi Constructions, an unregistered person. The goods are lying at a godown i…
Supply of Goods on Board a Conveyance in other exams
The same ground in other exams, if you are preparing for more than one or want another angle on it.
Supply of Goods on Board a Conveyance: frequently asked questions
What is the place of supply of goods sold on a train under GST?
It is the location at which the goods are taken on board the train, as per section 10(1)(e) of the IGST Act. The State where the train is when the sale happens does not matter.
Is the rule the same for services supplied on board an aircraft?
No. For services where supplier and recipient are in India, section 12(10) says the place of supply is the location of the first scheduled point of departure of the conveyance for the journey. Goods and services follow different rules.
Does section 10(1)(e) apply to a motor vehicle such as a bus?
Yes. The section lists a vessel, an aircraft, a train or a motor vehicle, and the word 'including' shows the list is illustrative. Goods supplied on board a bus take the location where they were loaded.
How do I decide between IGST and CGST + SGST here?
First find the place of supply under section 10(1)(e). Then compare it with the supplier's location. Same State means intra-State, so CGST + SGST/UTGST; different States mean inter-State, so IGST.