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CMA Final · Indirect Tax Laws and Practice · Place of Supply

Under the IGST Act, 2017, goods are supplied on board a train by a caterer. The goods are loaded at Nagpur, and the train then runs through Bhopal and ends at Delhi. What is the place of supply of these goods?

The place of supply is Nagpur. For goods supplied on board a conveyance such as a train, the IGST Act fixes the place of supply at the location where the goods are taken on board, not where the journey ends or where the passengers live.

  1. ADelhi, where the journey terminates
  2. BBhopal, the midpoint of the journey
  3. CNagpur, where the goods are taken on boardCorrect
  4. DThe location of the recipient passenger's usual residence

Explanation

Section 10(1)(e) says that goods supplied on board a conveyance, including a train, have as their place of supply the location at which the goods are taken on board. The goods were taken on board at Nagpur. Delhi is wrong because the end of the journey is relevant only to the movement rule in clause (a), not to supplies on board a conveyance.

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