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CA Intermediate · Taxation · Place of Supply

Rohit Jewellers, Kolkata, West Bengal, sells a gold necklace to an unregistered customer, Deepa, who visits the showroom, takes delivery in the shop, and pays in cash. Deepa lives in Ranchi, Jharkhand and her address is recorded in the bill. Under the IGST Act, 2017, what is the place of supply and the tax to be charged?

The place of supply is West Bengal and CGST plus SGST are charged. When goods are handed over at the showroom without any movement, the place of supply is where the goods are at the time of delivery. Both supplier and place of supply are in West Bengal, so it is intra-State.

  1. AJharkhand; IGST
  2. BWest Bengal; CGST and SGSTCorrect
  3. CJharkhand; CGST and SGST
  4. DWest Bengal; IGST

Explanation

Where goods are supplied without movement, the place of supply is the location of the goods at the time of delivery to the recipient. The necklace is delivered in the Kolkata showroom, so the place of supply is West Bengal. Supplier location is also West Bengal, so it is intra-State and CGST and SGST apply. The recipient's Ranchi address is irrelevant because goods are not moved to her, so Jharkhand is wrong.

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