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;
(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 [email protected].
Author Bio
Hi
We as a third-party delegate work to supplier to do installation at the recipient site on our behalf. Will it be considered under 10(1)(b) or 10(1)(d)?
Bill To Australia form Maharashatra India ,
Goods Ship to Third Party of Maharashatra India, whom Export good to Purcheser (Austalia) After assemble with there Goods (Job)
Please Sugest for GST Charges.
How Bill To Outside of India Client and Material Delivery within India to Outside India’s Client for assemble with there part and export (In GST)
Please provide a simple example of section 10 of IGST
ie bill to other state but goods delivered in state of supplier
Which GST will be levied.
Your email id mentioned [email protected]. is not a valid id.Pls provide a valid id