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CA Final · Indirect Tax Laws · Place of Supply

Kaveri Appliances, Chennai (Tamil Nadu), sells a washing machine to Mr. Ravi, an unregistered individual. Ravi collects the machine himself from Chennai and takes it to his home in Kochi, Kerala. The invoice records Ravi's address as Kochi, Kerala. Applying Section 10(1)(ca), what is the place of supply?

The place of supply is Kerala. For goods supplied to an unregistered person, the place of supply is the location per the recipient's address recorded in the invoice, overriding the movement and delivery rules. The supplier's location applies only when no address is recorded.

  1. AKerala, being the address of the unregistered recipient recorded in the invoiceCorrect
  2. BTamil Nadu, being the location of the supplier
  3. CTamil Nadu, because the goods were located there at the time of delivery to the recipient
  4. DKerala, but only if the goods are delivered by the supplier

Explanation

For supply of goods to a person other than a registered person, clause (ca) applies notwithstanding clauses (a) and (c). The place of supply is the location as per the address recorded in the invoice, here Kerala. The supplier's location applies only if no address is recorded. Delivery by the supplier is not a condition.

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