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CA Intermediate · Taxation · Place of Supply

Sundaram Textiles, a registered supplier in Coimbatore (Tamil Nadu), sells machinery to Rohit Traders, a registered person in Kochi (Kerala). The machinery is shipped by road from Coimbatore directly to Rohit Traders' premises in Kochi. What is the place of supply under the IGST Act, 2017?

The place of supply is Kochi, Kerala. For a supply of goods involving movement, the place of supply is where the movement terminates for delivery to the recipient. The goods end their journey at Rohit Traders' premises in Kochi, not at the supplier's location in Coimbatore.

  1. ACoimbatore, Tamil Nadu
  2. BKochi, KeralaCorrect
  3. CLocation of the transporter
  4. DState where the invoice is issued

Explanation

Where goods are supplied involving movement, the place of supply is the location where the movement of goods terminates for delivery to the recipient. The goods terminate their journey in Kochi, so the place of supply is Kerala. Coimbatore is only the location of the supplier and is irrelevant here.

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