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CMA Final · Indirect Tax Laws and Practice · Place of Supply

Sharma Traders of Jaipur (registered in Rajasthan) sells a machine to an unregistered individual and dispatches it by transport to Lucknow, Uttar Pradesh. The invoice records the buyer's address as Bhopal, Madhya Pradesh. Under Section 10 of the IGST Act, 2017 as given, what is the place of supply?

The place of supply is Madhya Pradesh. For a supply to an unregistered person, clause (ca) overrides the movement-based rule and fixes the place of supply at the address recorded in the invoice, so the Lucknow delivery point does not matter.

  1. AMadhya Pradesh, being the address of the unregistered recipient recorded in the invoiceCorrect
  2. BUttar Pradesh, being the location where movement of goods terminates
  3. CRajasthan, being the location of the supplier
  4. DCannot be determined and is fixed by prescribed manner

Explanation

Clause (ca) applies to supplies to a person other than a registered person and operates notwithstanding clauses (a) and (c). The place of supply is the location per the address recorded in the invoice, which is Madhya Pradesh. Option B follows clause (a), which is overridden here.

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