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

Anand Distributors, Ahmedabad, sells a consignment of tiles to Ravi Constructions, an unregistered person. The goods are lying at a godown in Surat, Gujarat, and no movement occurs; they are delivered at Surat itself. The invoice records only the name of the State of the recipient as Madhya Pradesh and no further address. Which is the correct place of supply under Section 10?

The place of supply is Madhya Pradesh. For an unregistered recipient, the place of supply is the address recorded in the invoice, overriding the rule for goods delivered without movement. The Explanation deems recording of just the State name as recording of the address.

  1. AGujarat, being the location of the goods at the time of delivery
  2. BMadhya Pradesh, because recording of the State name is deemed recording of the addressCorrect
  3. CAhmedabad, the supplier's location, because the full address is missing
  4. DIt has to be determined in the prescribed manner under sub-section (2)

Explanation

Clause (ca) applies to supplies to a person other than a registered person, notwithstanding clause (c) dealing with supplies without movement. Its Explanation says recording the name of the State in the invoice is deemed recording of the address. So the place of supply is Madhya Pradesh. Gujarat would follow from clause (c) but is overridden. The supplier's location applies only if no address is recorded.

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