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CA Intermediate · Taxation · Place of Supply

Shree Textiles Pvt Ltd, a registered supplier in Surat (Gujarat), sells readymade garments to Mehta Traders, a registered dealer in Jaipur (Rajasthan). Goods are delivered by the supplier's truck from Surat to Jaipur. What is the place of supply of these goods?

The place of supply is Jaipur, Rajasthan. When goods are moved by the supplier or the recipient, the place of supply is the location where the movement ends for delivery to the recipient. Since the garments finish their journey in Jaipur, that is the place of supply, making the supply inter-State.

  1. ASurat, Gujarat
  2. BJaipur, RajasthanCorrect
  3. CPlace where the invoice is issued
  4. DPlace of the transporter's registered office

Explanation

Where goods are supplied involving movement by the supplier or the recipient, the place of supply is the location where the movement of goods terminates for delivery to the recipient. The goods terminate their movement at Jaipur. Surat is the location of supplier, which is relevant only for deciding location of supplier, not place of supply.

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