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

Vikram Engineering, a Pune registered supplier, sells a prefabricated cold-storage unit to Himalaya Foods Pvt Ltd, registered in Delhi. The unit is assembled and installed at Himalaya's site in Dehradun, Uttarakhand. Himalaya's registered office is in Delhi. No import or export is involved. What is the place of supply under Section 10 of the IGST Act, 2017?

The place of supply is Uttarakhand. Where goods are assembled or installed at a site, the IGST Act fixes the place of supply at the place of installation or assembly, regardless of where the supplier or recipient is registered or where the goods were manufactured.

  1. ADelhi, the recipient's registered location
  2. BMaharashtra, the supplier's location
  3. CUttarakhand, the place of installation or assemblyCorrect
  4. DDelhi or Uttarakhand, as agreed between the parties

Explanation

Section 10(1)(d) says that where goods are assembled or installed at a site, the place of supply is the place of such installation or assembly. The unit is installed in Dehradun, so the place of supply is Uttarakhand. Delhi is wrong because the recipient's registered location does not govern this clause. Maharashtra is wrong because the supplier's location is not relevant. The parties cannot choose the place by agreement.

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