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CMA Final · Indirect Tax Laws and Practice · Place of Supply

Lakshmi Appliances, Chennai, sells a refrigerator to Mr. Anand, an unregistered individual. Goods are delivered to Anand's residence at Madurai, Tamil Nadu, but the invoice records his address as Bengaluru, Karnataka. Under Section 10(1)(ca) of the IGST Act, 2017, what is the place of supply?

The place of supply is Bengaluru. For goods supplied to an unregistered person, Section 10(1)(ca) makes the place of supply the location per the address recorded in the invoice, overriding the movement and delivery rules. The supplier's location applies only if no address is recorded.

  1. AMadurai, where the goods are delivered
  2. BBengaluru, the address of the unregistered recipient recorded in the invoiceCorrect
  3. CChennai, the supplier's location
  4. DMadurai or Chennai at the supplier's choice

Explanation

Section 10(1)(ca) applies to supply 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 recorded in the invoice. The invoice records Bengaluru, so Bengaluru is the place of supply; Madurai is wrong because delivery location is overridden by the invoice address.

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