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CA Final · Indirect Tax Laws · Place of Supply

Anand Stores, Jaipur, a registered supplier, sells a refrigerator to Ms. Meera, an unregistered customer, and the invoice records only the name of the State 'Karnataka' against her details. The refrigerator is delivered to her relative in Kerala. What is the place of supply under Section 10 of the IGST Act, 2017?

The place of supply is Karnataka. For a supply to an unregistered person, the place of supply is the address recorded in the invoice, and the law deems recording only the name of the State as recording the address. The delivery in Kerala is therefore irrelevant.

  1. ARajasthan, because no complete address is recorded
  2. BKerala, because goods were delivered there
  3. CKarnataka, since recording the State name is deemed recording of the addressCorrect
  4. DRajasthan, because the recipient is unregistered

Explanation

Under clause (ca), the place of supply to an unregistered person is the location per the address recorded in the invoice. The Explanation deems recording of the State name to be recording of the address. So Karnataka is the place of supply. Rajasthan would apply only if no address were recorded.

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