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CA Intermediate · Taxation · Place of Supply

Sundaram Textiles, a registered supplier in Tiruppur (Tamil Nadu), sells and ships goods to Ravi Traders, a registered person in Kochi (Kerala). The goods are transported by a Tiruppur-based transporter and delivered to Ravi Traders at 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 supplier's location in Tiruppur, or the transporter's location, does not decide the place of supply.

  1. ATiruppur, Tamil Nadu
  2. BKochi, KeralaCorrect
  3. CLocation of the transporter
  4. DLocation 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 at Kochi, so the place of supply is Kerala. Tiruppur is only the location of the supplier and is irrelevant here.

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