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CA Final · Indirect Tax Laws · Place of Supply

Himalaya Rail Catering, a registered supplier, loads packaged snacks on a train at Delhi. The train travels through Uttar Pradesh and Bihar and ends at Kolkata. Passengers buy snacks at various points along the route, some in Bihar. Under Section 10 of the IGST Act, 2017, what is the place of supply of the snacks?

The place of supply is Delhi. For goods supplied on board a conveyance such as a train, the place of supply is where the goods are taken on board. The snacks were loaded in Delhi, so the later route, sale point or destination does not change it.

  1. AWest Bengal, being the destination of the train
  2. BBihar, being where the passengers consume them
  3. CDelhi, being the location at which the goods are taken on boardCorrect
  4. DUttar Pradesh, being the first State crossed

Explanation

Clause (e) provides that for goods supplied on board a conveyance, including a train, the place of supply is the location at which such goods are taken on board. The snacks were taken on board at Delhi. Destination or point of sale is irrelevant.

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