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CA Final · Indirect Tax Laws · Place of Supply

Bharat Rail Catering supplies packaged snacks and drinks to passengers on a train running from Delhi to Kolkata through Uttar Pradesh, Bihar and Jharkhand. Snacks are loaded in Kanpur (Uttar Pradesh) and sold to passengers after the train crosses into Bihar. Under Section 10(1)(e), what is the place of supply of these goods?

The place of supply is Uttar Pradesh. Section 10(1)(e) provides that for goods supplied on board a conveyance, including a train, the place of supply is where the goods are taken on board, here Kanpur, regardless of where passengers buy them or where the journey ends.

  1. AKolkata, where the journey ends
  2. BBihar, where the sale is made to passengers
  3. CDelhi, where the journey begins
  4. DUttar Pradesh, where the goods are taken on boardCorrect

Explanation

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. The snacks were loaded in Kanpur, Uttar Pradesh. The locations of sale or of the journey's end are irrelevant.

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