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CA Final · Indirect Tax Laws · Place of Supply

Sharma Traders, registered in Jaipur (Rajasthan), sells a consignment of tiles to Verma Constructions, registered in Lucknow (Uttar Pradesh). The goods are transported by a transporter from Jaipur and delivered at Verma's site in Kanpur (Uttar Pradesh). What is the place of supply under Section 10(1) of the IGST Act, 2017?

The place of supply is Kanpur, Uttar Pradesh. For a supply involving movement of goods, by whomever carried, the place of supply is the location of the goods when the movement terminates for delivery to the recipient, not the supplier's or the recipient's registered address.

  1. AJaipur, Rajasthan, being the location of the supplier
  2. BLucknow, Uttar Pradesh, being the registered address of the recipient
  3. CKanpur, Uttar Pradesh, being the location of goods when movement terminates for delivery to the recipientCorrect
  4. DRajasthan, being the place where movement of goods commenced

Explanation

Where the supply involves movement of goods, whether by the supplier, the recipient or any other person, the place of supply is the location of the goods when movement terminates for delivery to the recipient. Movement terminates at Kanpur, so the place of supply is Kanpur in Uttar Pradesh. Lucknow is wrong because the recipient's registered address is irrelevant for a registered recipient.

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