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

Anita Mehra, an unregistered individual, buys a refrigerator from a registered dealer in Surat, Gujarat, and the dealer arranges delivery to her relative in Jaipur, Rajasthan. The invoice records Anita's address as Indore, Madhya Pradesh. Under the provisions of Section 10(1)(ca) of the IGST Act, 2017, what is the place of supply?

The place of supply is Madhya Pradesh. For supplies of goods to an unregistered person, the place of supply is the location per the address of the recipient recorded in the invoice, overriding the movement and delivery rules, so Indore on the invoice governs rather than Jaipur.

  1. ARajasthan, where the movement of goods terminates
  2. BGujarat, being the location of the supplier
  3. CMadhya Pradesh, being the location as per the address recorded in the invoiceCorrect
  4. DRajasthan or Madhya Pradesh, at the option of the recipient

Explanation

Clause (ca) applies where goods are supplied to a person other than a registered person. It operates notwithstanding clauses (a) and (c). The place of supply is the location per the address of that person recorded in the invoice. Here that is Indore, Madhya Pradesh. Rajasthan would follow from clause (a), but that clause is overridden. The supplier's location applies only if no address is recorded.

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