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CA Intermediate · Taxation · Place of Supply

Anand Consultants, a registered firm in Jaipur (Rajasthan), provides a management consulting service to Bhavani Steels Ltd., registered in Odisha. Bhavani Steels has given its registered address in Odisha. Consulting is not covered by any special provision. What is the place of supply?

The place of supply is Odisha. For ordinary services to a registered person with no special rule, the place of supply is the recipient's location. Bhavani Steels is registered in Odisha, so the supply is inter-State and IGST applies, rather than the supplier's state of Rajasthan.

  1. ARajasthan, the location of the supplier
  2. BOdisha, the location of the recipient as the service recipient is registeredCorrect
  3. CPlace where the service is actually performed
  4. DPlace of the supplier or recipient, whichever is higher in tax rate

Explanation

For services supplied to a registered person where no special provision applies, the place of supply is the location of the recipient. Bhavani Steels is registered in Odisha, so the place of supply is Odisha, making the supply inter-State and attracting IGST. Rajasthan would apply only if the recipient were unregistered and its address unavailable.

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