Skip to content

CA Intermediate · Taxation · Place of Supply

Meera Interiors, a registered person in Jaipur (Rajasthan), buys a laptop from Digi World, Bengaluru (Karnataka). Meera personally collects the laptop from Digi World's shop in Bengaluru and carries it back, with no transport arranged by the supplier. Digi World's invoice shows Meera's Jaipur address. What is the place of supply?

The place of supply is Bengaluru, Karnataka. Because the goods were handed over at the supplier's shop and no movement was arranged by or for the supplier, the place of supply is the location of the goods at the time of delivery to the buyer, regardless of the buyer's address.

  1. AJaipur, Rajasthan
  2. BBengaluru, Karnataka, because the goods are supplied there without movement by the supplierCorrect
  3. CPlace where payment is received
  4. DJaipur, because the invoice address governs

Explanation

When goods are handed over to the recipient at the supplier's location and are not delivered by the supplier or on his behalf for movement, the supply is of goods not involving movement: the place of supply is the location of the goods at the time of delivery to the recipient. Here that is Bengaluru, so the supply is intra-State in Karnataka. The invoice address does not change that.

Did you get it right without looking?

One question tells you little. A timed set on Place of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Place of SupplyFree diagnostic mock

More Place of Supply questions