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CA Intermediate · Taxation · Place of Supply

Meera Consultants, Pune (Maharashtra), a registered person, provides a legal advisory service to Orion Pharma Ltd, registered in Hyderabad (Telangana). The service is not linked to any immovable property. Meera has the recipient's registered address on record. Which is the place of supply under the IGST Act, 2017?

The place of supply is Hyderabad, Telangana. Under the default rule for services between persons in India, where the recipient is registered the place of supply is the recipient's location. The supplier's location in Pune is irrelevant, making this an inter-State supply.

  1. APune, Maharashtra, as the location of the supplier
  2. BHyderabad, Telangana, as the location of the recipientCorrect
  3. CLocation where the advice is mostly used, to be decided by the parties
  4. DMaharashtra or Telangana, at the option of the supplier

Explanation

For services where both supplier and recipient are in India, the general rule for a registered recipient is the location of the recipient. Orion Pharma is registered in Hyderabad, so the place is Telangana. Choosing Pune treats the rule as if the recipient were unregistered with no address, which is wrong.

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