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

A registered Chennai supplier invoices an unregistered buyer for goods and records only 'Kerala' as the buyer's State in the invoice, with no street address. The goods are physically moved to Karnataka at the buyer's request. Which statement correctly gives the place of supply under Section 10(1)(ca)?

The place of supply is Kerala. The explanation to the rule for unregistered recipients treats the mere recording of the recipient's State name in the invoice as recording of the address, so the supplier's location and the destination of movement are irrelevant.

  1. AKarnataka, because the goods' movement terminates there
  2. BTamil Nadu, because no full address is recorded in the invoice
  3. CKerala, because recording the name of the State is deemed to be recording of the addressCorrect
  4. DUndeterminable, so it must be fixed in the prescribed manner under Section 10(2)

Explanation

The Explanation to clause (ca) states that recording the name of the State of the person in the invoice is deemed to be recording of the address. So the address is recorded and the place of supply is Kerala. Tamil Nadu would apply only if the address were not recorded. Karnataka is wrong because clause (ca) overrides clause (a). Section 10(2) is not needed because the place can be determined.

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