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CMA Final · Indirect Tax Laws and Practice · Place of Supply

A Bengaluru supplier sells a packaged generator to an unregistered individual and ships it to Kochi. The invoice records the buyer's address as Mysuru, Karnataka, and the goods are delivered to the buyer's relative in Kochi. Under Section 10(1)(ca) of the IGST Act, the place of supply is:

The place of supply is Mysuru. For supply of goods to an unregistered person, the place of supply is the location per the address recorded in the invoice, overriding the delivery-based rules. The supplier's location applies only if no address is recorded.

  1. AKochi, where movement terminates
  2. BBengaluru, the supplier's location
  3. CMysuru, the address of the buyer recorded in the invoiceCorrect
  4. DKerala, the state of the transporter

Explanation

For supplies of goods to a person other than a registered person, clause (ca) applies notwithstanding the movement and no-movement clauses. The place of supply is the location per the address recorded in the invoice, which is Mysuru. Kochi is wrong because the delivery location is overridden by this rule.

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