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

Anand Steels of Pune sells goods to Rohan Ltd of Chennai (registered). On Rohan's direction, Anand delivers the goods during movement to Sagar Pvt Ltd, a buyer in Hyderabad, through a transfer of documents of title; Rohan's principal place of business is in Chennai. Under Section 10(1) of the IGST Act, the place of supply of this supply by Anand is:

The place of supply is Chennai. When goods are delivered on the direction of a third person, before or during movement, that person is deemed to have received them, and the place of supply is the third person's principal place of business, not the final delivery location.

  1. AHyderabad, where the goods finally arrive
  2. BPune, the supplier's location
  3. CChennai, the principal place of business of the third person who directed the deliveryCorrect
  4. DLocation of Sagar Pvt Ltd's bank

Explanation

Where goods are delivered by the supplier to a recipient or another person on the direction of a third person, before or during movement, the third person is deemed to have received the goods. The place of supply is that third person's principal place of business, here Rohan's in Chennai. Hyderabad is wrong because it ignores the deeming rule.

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