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CA Intermediate · Taxation · Place of Supply

Ramesh Associates, a registered firm in Pune (Maharashtra), orders goods from a supplier in Indore (Madhya Pradesh). On Ramesh's instruction, the supplier delivers the goods to a third party, Anil Enterprises, in Hyderabad (Telangana), while Ramesh remains the person to whom the invoice is addressed. Under the IGST Act, 2017, what is the place of supply?

The place of supply is Pune, Maharashtra. Where goods are delivered to another person on the direction of a third person, whether before or during movement, the third person is deemed to have received the goods. The place of supply is that third person's principal place of business, here Ramesh Associates in Pune.

  1. AHyderabad, Telangana
  2. BIndore, Madhya Pradesh
  3. CPune, MaharashtraCorrect
  4. DPlace chosen by Anil Enterprises

Explanation

Where goods are delivered by the supplier to a recipient or any other person on the direction of a third person, the third person is deemed to have received the goods. The place of supply is then the principal place of business of that third person. Here Ramesh Associates directed the delivery, so the place of supply is Pune. Hyderabad is merely the delivery location and is wrong.

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