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CA Final · Indirect Tax Laws · Place of Supply

Lakshmi Appliances, Hyderabad, sells a refrigerator over the counter to Ramesh, an unregistered individual, and the goods are taken by Ramesh in his own vehicle to Warangal. The invoice, issued on or after 1 October 2023, records Ramesh's address as Vijayawada, Andhra Pradesh. What is the place of supply under Section 10?

The place of supply is in Andhra Pradesh, at the address recorded in the invoice. For supplies to a person who is not registered, the invoice address of the recipient decides the place of supply, overriding the delivery-location rules. The supplier's location applies only where no address is recorded.

  1. AWarangal, where the goods' movement terminates
  2. BHyderabad, the location of the supplier
  3. CHyderabad, since the sale was made over the counter
  4. DAndhra Pradesh, the State recorded in the invoice address of the unregistered recipientCorrect

Explanation

Clause (ca) applies to supplies to a person other than a registered person and applies notwithstanding clauses (a) and (c). The place of supply is the location as per the address recorded in the invoice, here Vijayawada in Andhra Pradesh. Warangal is the clause (a) answer, which is overridden. Supplier's location applies only if no address is recorded.

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