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CA Final · Indirect Tax Laws · Place of Supply

Sundaram Traders, a registered dealer in Chennai, sells furniture to Mr. Kiran, an unregistered individual. The invoice records Mr. Kiran's address as Hyderabad, Telangana. The goods are delivered to a transporter at Chennai and carried to Bengaluru, Karnataka, where Mr. Kiran's friend collects them. Under Section 10 of the IGST Act, 2017, what is the place of supply?

The place of supply is Telangana. Where goods are supplied to an unregistered person, the place of supply is the location per the address recorded in the invoice, and this overrides the rule based on where movement terminates. The invoice shows Hyderabad, so Telangana applies, not Karnataka.

  1. ATelangana, being the address of the unregistered recipient recorded in the invoiceCorrect
  2. BKarnataka, being where the movement of goods terminates
  3. CTamil Nadu, being the location of the supplier
  4. DTamil Nadu, because the goods began movement there

Explanation

Clause (ca) applies where goods are supplied to a person other than a registered person. It operates notwithstanding clauses (a) and (c). The place of supply is the location as per the address recorded in the invoice, which is Hyderabad in Telangana. Karnataka, where movement ends, is wrong because clause (a) is overridden.

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