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CA Intermediate · Taxation · Place of Supply

Aarav Traders, a registered dealer in Lucknow (Uttar Pradesh), sells goods to Meera Stores, a registered dealer in Lucknow, and the goods are delivered at Meera Stores' shop in Lucknow. In the same month, Aarav Traders sells goods to a retail customer at its Lucknow counter who takes the goods himself and carries them to Delhi. What are the places of supply of the two supplies respectively?

Uttar Pradesh is the place of supply for both supplies. For the first, goods are delivered in Lucknow. For the second, the customer takes the goods at the counter and the supplier does not arrange movement, so the place is where the goods are at the time of delivery, Lucknow.

  1. AUttar Pradesh for the first supply; Delhi for the second supply
  2. BUttar Pradesh for both suppliesCorrect
  3. CDelhi for both supplies
  4. DUttar Pradesh for the first supply; place of the transporter for the second supply

Explanation

Where goods are supplied without movement by the supplier, the place of supply is the location of the goods at the time of delivery to the recipient. In the first supply goods are delivered in Lucknow, so Uttar Pradesh. In the second, the customer takes the goods at the counter in Lucknow and no movement is arranged by the supplier, so the place is the location of goods at delivery, Uttar Pradesh. Delhi is wrong as it is only the customer's later destination.

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