Section 10 /IGST ACT 2017/Place of Supply of Goods other than supply of goods imported into or exported from India. 

Section 10- Place of supply of goods, other than supply of goods imported into, or exported from India.

(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, ––

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(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 person;

Place of supply of goods

(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;

(d) where the goods are assembled, or installed at site, the place of supply shall be the place of such installation or assembly;

(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed. 

Analysis- Place of supply of goods, where the supplier and the recipient are both located within India, will be determined in accordance with section 10 of the IGST Act.

-Location of supplier- the word ‘location’ in this phrase refers to the site or premises (geographical point) where the supplier is situated with the goods in his control ready to be supplied.

-Place of supply of goods- this is a legal phrase which the section decides to be the site or premises (geographical point) as its ‘place of supply’.

a. Where supply involves movement– the place of supply will be the place where the  goods are located at the time at which the movement terminates for delivery to the recipient.

Examples-

Particulars Supplier factory from where goods removed Termination of movement for delivery Place of supply
Movement of goods by supplier Orissa Assam Assam (IGST payable at Orissa)
Movement of goods by supplier Assam Assam Assam (CGST/SGST payable)
Movement of goods by recipient Kerala Goa Goa (IGST payable at Kerala)

(b) Where goods are delivered by the supplier to the recipient but at the instruction of a third person- then the place of supply will be the principal place of business of such third person and not of the actual recipient.

  • Two supplies involved-Supplier to third person and by third person to recipient but place of supply would be Supplier to third person.
Location of supplier

-S

Third person (L) who instructed delivery to R Place of delivery of goods- R Place of Supply for L
Ahmedabad Amritsar Ahmedabad Ahmedabad (IGST at Punjab)

(c) Where the supply does not involve movement of goods- the place of supply will be the location of the goods at the time of its delivery to the recipient.

For example- For example, a generator that is bolted to the concrete floor in the basement of a building purchased by the tenant and being left behind at the time of terminating the tenancy, the supply of the generator by the tenant to the landlord for an agreed price is a case of ‘supply that does not involve movement of the goods’. In such cases, the place of supply will be where the generator stands bolted to the concrete floor and without requiring any movement.

(d) Where the goods are assembled or installed at site, the place of supply will be the location of such installation or assembly.

For example-

Supply of works stations Location of supplier-

Gujarat

Location of recipient-

Gujarat

Installation site-Kerala
Place of supply Kerala –IGST payable at Gujarat

(e) Where goods are supplied on-board a conveyance, the place of supply will be the location at which the goods are taken on-board.-

  • The term ‘conveyance’ includes vessel, aircraft, train or motor vehicle as defined under section 2(34) of the CGST Act.

For example-

Supply of gift items on flight Loaction of supplier-Punjab Loading of goods-Punjab Passenger boards at Delhi Place of supply-Punjab(CGST/SGST)

(f) Residuary provision: Where none of the foregoing provisions are applicable to determine the place of supply in case of a supply of goods, the Central Government may prescribe rules regarding the manner of its determination. 

Queries/doubts related to above mailed mamta0581@gmail.com.

Author Bio

More Under Goods and Services Tax

One Comment

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031