Skip to content

CA Intermediate · Taxation · Place of Supply

Sharma Events Pvt Ltd, Jaipur (registered in Rajasthan), is hired by Mehta Traders, an unregistered individual in Udaipur, Rajasthan, to organise a wedding reception for Mehta's family. The event is held at a resort in Goa. Under the IGST Act, 2017, what is the place of supply of this service and the nature of supply?

The place of supply is Goa and the supply is inter-State. For event-based services supplied to an unregistered person, the place of supply is where the event is held. Since the supplier is in Rajasthan and the event is in Goa, the supply is inter-State.

  1. AGoa; inter-State supplyCorrect
  2. BRajasthan; intra-State supply
  3. CGoa; intra-State supply
  4. DRajasthan; inter-State supply

Explanation

Services supplied by way of event organisation to an unregistered person are covered by the rule for such services, with the place of supply being the location of the event, which is Goa. The supplier is located in Rajasthan, so the location of supplier and place of supply are in different States, making it an inter-State supply. Rajasthan is wrong because it is the recipient's location, which applies only to the default rule for unregistered persons and not this specific rule.

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