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CA Intermediate · Taxation · Place of Supply

Zenith Logistics Ltd, registered in Delhi, provides a service of transporting goods by road, in a goods transport agency capacity, to Bansal Pvt Ltd, a registered person in Lucknow (Uttar Pradesh). The goods are picked up in Jaipur (Rajasthan) and delivered in Bhopal (Madhya Pradesh). Bansal Pvt Ltd is the recipient and is registered in Uttar Pradesh. Which statement is correct about the place of supply under the IGST Act, 2017?

The place of supply is Lucknow, Uttar Pradesh. For goods transportation services other than mail or courier, a registered recipient's location decides the place of supply. The pickup point applies only if the recipient is unregistered, so Jaipur and Bhopal are not relevant here.

  1. AJaipur, Rajasthan, being the place where goods are handed over for transport
  2. BBhopal, Madhya Pradesh, being the destination
  3. CDelhi, being the location of the supplier
  4. DLucknow, Uttar Pradesh, being the location of the registered recipientCorrect

Explanation

For transportation of goods other than by way of mail or courier, if the service is to a registered person, the place of supply is the location of that registered person. Bansal Pvt Ltd is registered in Uttar Pradesh, so the place of supply is Lucknow. The pickup and drop points matter only when the recipient is unregistered, in which case the place is where goods are handed over for transportation.

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