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CA Final · Indirect Tax Laws · Place of Supply

Deccan Agro Ltd, registered in Pune (Maharashtra), sells a stock of grain lying in a warehouse in Indore (Madhya Pradesh) to Anil Verma, an unregistered individual. The grain stays in the warehouse and Anil collects it later, so no movement of goods is involved in the sale. The invoice records only the name of the State 'Rajasthan' for Anil. What is the place of supply?

The place of supply is Rajasthan. For a supply to an unregistered person, the invoice address determines the place of supply even when there is no movement of goods, and recording just the State name is deemed to be recording the address. The warehouse location in Madhya Pradesh is therefore overridden.

  1. AMadhya Pradesh, the location of goods at the time of delivery
  2. BMaharashtra, the location of the supplier
  3. CRajasthan, because recording the name of the State is deemed to be recording the addressCorrect
  4. DRajasthan only if Anil later moves the goods there

Explanation

Clause (ca) of section 10(1) applies to supplies to a person other than a registered person, notwithstanding clauses (a) and (c). Its Explanation deems recording the name of the State as recording the address. So the place of supply is Rajasthan, not Madhya Pradesh where goods are located under clause (c). The supplier's location applies only if no address is recorded.

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