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Place of Supply of Goods (other than Goods Imported / Exported) as per Section 10 of IGST Act, 2017

The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as  under,—

Application Section

Nature of Supply of Goods

Place of Supply

10(1)(a)

Where the supply involves movement of  goods, whether by the supplier or the recipient  or by any other person

The location of the goods at the time at which  the movement of goods terminates for  delivery to the recipient

Example 1:
Mr. Clean of Delhi makes a supply of goods to Mr. Dust of Noida (UP). The place of supply in this case shall be  Noida where the movement goods terminates and it will be a case of inter-State supply liable to IGST.  On the other hand, if Mr. Dust is also located in Delhi, the place of supply shall be Delhi and it will be a case of intraState supply liable to CGST and Delhi SGST. 

Example 2:
Mr. Clean of Jaipur (Rajasthan) comes to Delhi and wishes to buy a TV for his residence at Jaipur. He  visited a showroom of TV of Mr. Dust in Delhi. Mr. Dust agreed to transport and deliver the TV to Mr. Clean at his residence in Jaipur  for a sum of Rs. 80,000 including transportation charges. In this case, supply involves movement of goods from  Delhi to Jaipur and responsibility of movement of goods is of the supplier Mr. Dust. The place of supply in this case  shall be Jaipur where the movement terminates for delivery. Hence, it shall be a case of inter-State supply and  liable to IGST. 

The situation will not be different if Mr. Clean agrees that he will himself move the goods to Jaipur

10(1)(b)

Where the goods are delivered by the supplier  to a recipient or any other person on the  direction of a third person, whether acting as  an agent or otherwise, before or during  movement of goods, either by way of transfer  of documents of title to the goods or otherwise

It shall be deemed that the said third person has  received the goods and the place of supply of  such goods shall be the principal place of  business of such third person

Example 1:
Mr. Clean of Delhi has supplied goods to Mr. Dust of Surat (Gujarat). During the movement of goods Mr. Dust directed Mr. Clean  to transfer the documents of title to S of Mumbai. The place of supply of such goods shall be Gujarat and it will  be a case of inter-State supply liable to IGST. 

Example 2:
Mr. Clean, of Punjab, books an order to supply tools to K of Kanpur (UP). Mr. Clean places the order on Gedore  Tools Ltd. Delhi, the manufacturer of such tools and instructs Gedore Tools Ltd. to deliver the tools directly to  K of Kanpur to save the transportation cost. 

In this case goods are delivered to K in Kanpur by Gedore Tools Ltd. the supplier of goods located in Delhi on  the direction of Mr. Clean. Delivery of goods by Gedore of Delhi to K of Kanpur (UP) shall be considered as supply to  Mr. Clean of Punjab and the place of supply of this transaction shall be Punjab being the principal place of business of  Mr. Clean. This supply shall be considered as inter-State supply and shall be subject to IGST which will be charged by  Gedore Tools Ltd. of Delhi in his invoice raised to Mr. Clean of Punjab.

10(1)(c)

Where the supply does not involve movement  of goods, whether by the supplier or the  recipient

The location of such goods at the time of the  delivery to the recipient

10(1)(d)

Where the goods are assembled or installed at  site

The place of such installation or assembly

Example:
Suppose Mr. Clean of Delhi enters into an agreement with Mr. Dust of Jaipur (Rajasthan) for installation of TV  tower at Kanpur (U.P.). The place of supply in this case shall be the place of installation of TV tower i.e.  Kanpur (UP). Thus it will be a case of inter-State supply and Mr. Clean will have to pay IGST at Delhi. 

On the other hand, if this TV tower has to be installed by Mr. Clean on behalf of Mr. Dust in Delhi, it will be a case of intra-State supply and Mr. Clean will have to pay CGST and Delhi SGST at Delhi.

10(1)(e)

Where the goods are supplied on board a  conveyance, including a vessel, an aircraft, a  train or a motor vehicle

The location at which such goods are taken on  board  However, in respect of services, the place of  supply shall be the location of the first  scheduled point of departure of that conveyance for the  journey.

Example:
Mr. Clean, a flight caterer, of Delhi has loaded food and drinks on Air India aircraft at Delhi on its flight from  Mumbai to Chandigarh via Delhi for passengers on board. The place of supply in this case shall be Delhi from  where foods and drinks were loaded on the aircraft and it will be a case of intra-State supply and Mr. Clean will have to  pay CGST and Delhi SGST at Delhi

10(2)

Where the place of supply of goods cannot be  determined

To be determined in such manner as may be  prescribed

The above Section 10 of IGST Act, 2017 can be summed up in the following Chart :
Chart Showing Place of Supply of goods as per section Section 10 of IGST Act, 2017
 
How GST Is Levied in the case of Inter-State Supply of Goods and/or Service under GST Act. GST - Ready Reckoner in India Place of Supply of Services (where Location of Supplier and Recipient is in India) as per Section 12 of IGST Act, 2017
 

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