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CA Final · Indirect Tax Laws · Place of Supply

Sunrise Traders, a registered dealer in Surat (Gujarat), sells machinery to Mehul Rao, an unregistered individual. The goods are dispatched by the supplier to Mehul's factory in Nashik (Maharashtra). The invoice records Mehul's address as a residence in Pune (Maharashtra). Under Section 10(1)(ca) of the IGST Act, what is the place of supply?

The place of supply is Pune. Because the buyer is unregistered, Section 10(1)(ca) applies despite clause (a) and fixes the place of supply at the recipient's address recorded in the invoice, not at the delivery location in Nashik or the supplier's location in Surat.

  1. ASurat, being the location of the supplier
  2. BNashik, being the location where movement terminates
  3. CPune, being the address of the recipient recorded in the invoiceCorrect
  4. DGujarat or Maharashtra, at the supplier's choice

Explanation

Clause (ca) applies where goods are supplied to a person other than a registered person. It operates notwithstanding clause (a), so the address recorded in the invoice decides the place of supply. Here that is Pune. Nashik, the delivery location under clause (a), is overridden.

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