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CA Final · Indirect Tax Laws · Place of Supply

Kaveri Appliances of Chennai (registered) sells a refrigerator to Mr. Arjun, an unregistered individual. The invoice records Arjun's address as Hyderabad, Telangana, and the refrigerator is handed over to Arjun's relative at Kaveri's showroom in Chennai, who carries it away personally. Applying Section 10 as amended with effect from 1-10-2023, what is the place of supply?

The place of supply is Telangana. For goods supplied to an unregistered person, clause (ca) overrides the movement and delivery clauses, and the place of supply is the location per the recipient's address recorded in the invoice. The supplier would be the fallback only if no address were recorded.

  1. ATamil Nadu, being the location of the goods at the time of delivery to the recipient
  2. BTelangana, being the address of the unregistered recipient recorded in the invoiceCorrect
  3. CTamil Nadu, being the location of the supplier since the recipient is unregistered
  4. DTelangana or Tamil Nadu, at the option of the supplier

Explanation

Clause (ca) applies to supply of goods to a person other than a registered person and operates notwithstanding clauses (a) and (c). The place of supply is the location per the address of the recipient recorded in the invoice, here Hyderabad, Telangana. Tamil Nadu would apply only if no address were recorded, so that option is wrong.

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