Skip to content

CA Intermediate · Taxation · Place of Supply

Sundaram Textiles, a registered supplier in Tiruppur (Tamil Nadu), sells and delivers 500 metres of fabric to Mehta Traders, a registered person in Surat (Gujarat). Goods are moved by road from Tiruppur to Surat. What is the place of supply under the IGST Act, 2017?

The place of supply is Surat, Gujarat. When goods are moved to the recipient, the place of supply is where the movement of goods ends for delivery. Tiruppur is only the supplier's location, so this is an inter-State supply under IGST.

  1. ATiruppur, Tamil Nadu
  2. BSurat, GujaratCorrect
  3. CPlace where the invoice is raised
  4. DPlace where the order was placed

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. Here the goods terminate at Surat. Tiruppur is the location of the supplier, which is relevant to the place of supply only in specific cases, not for a normal movement of goods.

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