Skip to content

CA Intermediate · Taxation · Place of Supply

Gagan Logistics, a registered person in Ludhiana (Punjab), arranges and provides a transportation of goods by road service, as a goods transport agency-type service, for Zenith Pharma, a registered person in Indore (Madhya Pradesh), for carrying goods from Ludhiana to Nagpur. Under the IGST Act, 2017, what is the place of supply of this transportation of goods service?

The place of supply is Indore, Madhya Pradesh. For transportation of goods other than by mail or courier, the place of supply is the location of the recipient when the recipient is registered. Zenith Pharma is registered in Indore, so the destination or origin of the goods does not matter.

  1. ANagpur, Maharashtra, being the destination of goods
  2. BLudhiana, Punjab, being the location of the supplier
  3. CIndore, Madhya Pradesh, being the location of the registered recipientCorrect
  4. DPlace where goods are handed over for transportation, i.e. Punjab

Explanation

For transportation of goods (other than by way of mail or courier) the place of supply is the location of the recipient if the recipient is a registered person. Zenith Pharma is registered and located in Indore, so the place of supply is Madhya Pradesh. The destination of the goods (Nagpur) is the rule only when the recipient is unregistered (place where goods are handed over for transportation).

Did you get it right without looking?

One question tells you little. A timed set on Place of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Place of SupplyFree diagnostic mock

More Place of Supply questions