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CA Final · Indirect Tax Laws · Place of Supply

Bharat Tools Pvt Ltd, registered in Pune, sells machinery to Kiran Traders, a registered person in Nagpur. Goods are dispatched by Bharat Tools from Pune and delivered at Kiran Traders' godown in Nagpur. What is the place of supply under Section 10 of the IGST Act, 2017?

The place of supply is Nagpur. Where a supply involves movement of goods, the place of supply is the location of the goods when the movement terminates for delivery to the recipient, and the goods reach Kiran Traders' godown in Nagpur.

  1. APune, being the location of the supplier
  2. BNagpur, being the location of the goods when movement terminates for delivery to the recipientCorrect
  3. CThe place where the invoice is raised
  4. DThe place where payment is received

Explanation

Under Section 10(1)(a), where supply involves movement of goods, the place of supply is the location of the goods at the time the movement terminates for delivery to the recipient. Movement ends in Nagpur. Pune is the origin and is not relevant for this rule.

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