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CA Intermediate · Taxation · Place of Supply

Sundaram Textiles Pvt Ltd, registered in Tiruppur (Tamil Nadu), sells machinery to Kavya Traders, registered in Kochi (Kerala). Goods are moved by a transporter from Tiruppur directly to Kavya Traders' warehouse in Kochi. What is the place of supply under the IGST Act, 2017?

The place of supply is Kochi, Kerala. When a supply of goods involves movement, the place of supply is where the movement terminates for delivery to the recipient. The goods are delivered at Kavya Traders' warehouse in Kochi, so the supplier's location in Tiruppur is irrelevant.

  1. ATiruppur, Tamil Nadu
  2. BKochi, KeralaCorrect
  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 end up in Kochi, so the place of supply is Kerala. Tiruppur is the location of supplier, not the place of supply, so it is wrong.

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