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CA Intermediate · Taxation · Place of Supply

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

The place of supply is Surat, Gujarat. When a supply of goods involves movement, the place of supply is where the movement terminates for delivery to the recipient. The supplier's location in Tiruppur is irrelevant, so the supply is inter-State and attracts IGST.

  1. ATiruppur, Tamil Nadu
  2. BSurat, GujaratCorrect
  3. CPlace where the invoice is raised
  4. DPlace where the transporter is registered

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 in Surat, so the place of supply is Gujarat. Tiruppur is the location of the supplier, not the place of supply, so it is wrong.

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