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CA Final · Indirect Tax Laws · Place of Supply

Sundaram Traders of Chennai (registered) sells machinery to Kiran Enterprises, registered in Pune. Sundaram arranges transport and the machinery is delivered at Kiran's godown in Nashik, where the movement terminates. Under Section 10 of the IGST Act, 2017, what is the place of supply?

The place of supply is Nashik. Where goods move, whether by the supplier, the recipient or anyone else, the place of supply is the location of the goods when the movement terminates for delivery to the recipient. The supplier's or recipient's registered address is irrelevant here.

  1. ANashik, because that is where the movement of goods terminates for delivery to the recipientCorrect
  2. BChennai, the location of the supplier
  3. CPune, the registered address of the recipient
  4. DChennai, because the supplier arranged the transport

Explanation

Where a supply involves movement of goods, the place of supply is the location of the goods when the movement terminates for delivery to the recipient. Movement ends at Nashik. Pune is wrong because the recipient's registered address does not decide the place when goods move to another location.

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