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

Bharat Rail Catering, registered in Kolkata, supplies packaged snacks on board a train. The goods are loaded onto the train at Howrah, West Bengal. The train then runs through Jharkhand and Bihar, where passengers consume them and the sale is made, ending at Patna. Under Section 10(1)(e), what is the place of supply?

The place of supply is West Bengal. For goods supplied on board a conveyance such as a train, the place of supply is the location at which the goods are taken on board, which is Howrah, regardless of where they are sold or consumed.

  1. ABihar, where the train journey ends
  2. BJharkhand, where most of the sales occur
  3. CWest Bengal, where the goods are taken on boardCorrect
  4. DDetermined by prescribed manner because the conveyance crosses States

Explanation

For goods supplied on board a conveyance, including a train, the place of supply is where the goods are taken on board. They were loaded at Howrah, so the place of supply is West Bengal. The route and destination are irrelevant.

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