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 :
