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CA Final · Indirect Tax Laws · Place of Supply

Anita Mehta, an unregistered individual, buys a laptop from Techmart, a registered dealer in Bengaluru (Karnataka). The invoice records her address as Hyderabad, Telangana. She collects the laptop personally from the Bengaluru store, so there is no movement of goods to her. What is the place of supply?

The place of supply is Hyderabad, Telangana. For goods supplied to an unregistered person, the place of supply is the location as per the address of the person recorded in the invoice, notwithstanding the general movement and delivery rules. Only if no address is recorded does the supplier's location apply.

  1. ABengaluru, Karnataka, since goods were delivered at the store
  2. BHyderabad, Telangana, the address of the unregistered recipient recorded in the invoiceCorrect
  3. CKarnataka, because the supplier is registered there
  4. DTelangana only if the laptop is later transported there

Explanation

Clause (ca) applies to supply of goods to a person other than a registered person and operates notwithstanding clauses (a) and (c). The place of supply is the location per the address recorded in the invoice, which is Hyderabad. Bengaluru would be the answer under the delivery rule but is overridden here.

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