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CA Final · Indirect Tax Laws · Place of Supply

Precision Lifts Pvt Ltd, registered in Hyderabad (Telangana), supplies a lift to Orbit Mall LLP, registered in Mumbai (Maharashtra). The lift is dispatched from Hyderabad and assembled and installed at Orbit Mall's new site in Surat (Gujarat). Orbit Mall's invoice address is Mumbai. Which statement correctly gives the place of supply under section 10 of the IGST Act?

The place of supply is Gujarat. Where goods are assembled or installed at site, the place of supply is the place of installation or assembly. The lift is installed in Surat, so neither the recipient's Mumbai address nor the supplier's Hyderabad location determines the place of supply.

  1. AMaharashtra, as the recipient's registered address
  2. BTelangana, as goods move from the supplier's location
  3. CGujarat, because for goods assembled or installed at site the place of supply is the place of installation or assemblyCorrect
  4. DGujarat, because the movement of goods terminates for delivery to the recipient in Mumbai

Explanation

Section 10(1)(d) provides that where goods are assembled or installed at site, the place of supply is the place of such installation or assembly, which is Surat, Gujarat. The recipient is registered, so clause (ca) does not apply. The Mumbai address and the Hyderabad dispatch point are irrelevant, and option D wrongly pairs Gujarat with Mumbai as the delivery point.

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