CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY

CHAPTER 7: Place of Supply

Illustration 1
Mr. A of Nashik, Maharashtra sells 10 refrigerators to Mr. B of Pune, Maharashtra for delivery
at Mr. B’s place of business in Pune. Determine the place of supply of goods and nature of
transaction.
Solution
As per Section 10(1)(a) of the IGST Act, the place of supply is Pune in Maharashtra. Since
the location of supplier is Nasik (Maharashtra) and place of supply is Pune, CGST and SGST shall
be charged as it comes under the category of intrastate supply.
Particulars Supplier’s factory Termination of
from where goods movement for
are removed delivery

Movement of goods by the supplier (goods Orissa Assam

dispatched by supplier) (Section 10(1)(a) read with
Orissa Orissa
2(96)(a) of CGST Act

Movement of goods by the recipient (goods Kerala Goa

collected by recipient) (Section 10(1)(a) read with
Kerala Kerala
2(96)(b) of CGST Act)

Section 10(1)(a)
Particulars Supplier’s factory Termination of Place of Tax payable
from where goods movement for supply
are removed delivery

Movement of goods by Orissa Assam Assam IGST payable at

the supplier (goods Orissa
dispatched by supplier)
Orissa Orissa Orissa CGST / SGST
(Section 10(1)(a) read
payable at Orissa
with 2(96)(a) of CGST
Act

Movement of goods by Kerala Goa Goa IGST payable at

the recipient (goods Kerala
collected by recipient)
Kerala Kerala Kerala CGST / SGST
(Section 10(1)(a) read
payable at Kerala
with 2(96)(b) of CGST
Act)

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Illustration 2
Determine the place of supply of goods for the following
Supplier and his Location of the Recipient and his Place of delivery of
location buyer (third person) location goods

A Ltd. Bangalore B Ltd. Bangalore M Ltd. Mumbai Mumbai

A Ltd. Bangalore M Ltd. Mumbai B Ltd. Bangalore Bangalore

A Ltd. Bangalore S Ltd. Surat M Ltd. Mumbai Mumbai

A Ltd. Bangalore M Ltd. Mumbai P Ltd. Mumbai Mumbai

Solution
As per Section 10(1)(b) of IGST Act, 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 the place of supply shall be deemed to be that of
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.
Section 10(1)(b)
Supplier and Location of Recipient and Place of delivery Place of CGST + SGST
his location the buyer his location of goods supply / IGST
(third person)
A Ltd. B Ltd. M Ltd. Mumbai Bangalore CGST + SGST
Bangalore Bangalore Mumbai
A Ltd. M Ltd. Mumbai B Ltd. Bangalore Mumbai IGST
Bangalore Bangalore
A Ltd. S Ltd. Surat M Ltd. Mumbai Surat IGST
Bangalore Mumbai
A Ltd. M Ltd. Mumbai P Ltd. Mumbai Mumbai Mumbai IGST
Bangalore

Illustration 3
Particulars Location of Location of Location of
Supplier recipient Goods

Sale of pre – installed DG Set Delhi Bhopal Bhopal

Manufacture of moulds by job – worker (supplier), Tamil Nadu Kerala Tamil Nadu
sold to the Principal, but retained in job worker’s
premises

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Solution
section 10(1)(c)
Particulars Location Location Location Place Tax payable
of Supplier of of Goods of
recipient supply
Sale of pre – installed DG Set Delhi Bhopal Bhopal Bhopal IGST payable
at Delhi

Manufacture of moulds by job – Tamil Nadu Kerala Tamil Tamil CGST + TN

worker (supplier), sold to the Nadu Nadu GST Payable at
Principal, but retained in job Tamil Nadu
worker’s premises

Illustration 4
Particulars Location of Registered Installation
Supplier Office of Assembly
Recipient Site

Installation of weigh bridge Delhi Bhopal Bhopal

Servers supplied and installed at the office of a Karnataka Goa Karnataka

marketing firm
Supply of workstations Gujarat Gujarat Kerala

Solution
Section 10(1)(d)
Particulars Location Registered Installation Place Tax payable
of Supplier Office of Assembly of
Recipient Site supply
Installation of weigh bridge Delhi Bhopal Bhopal Bhopal IGST payable
at Delhi

Servers supplied and installed Karnataka Goa Karnataka Kerala IGST payable
at the office of a marketing at Gujarat
firm
Supply of workstations Gujarat Gujarat Kerala Kerala IGST payable
at Gujarat

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Illustration 5
Mr. A, a cost and Management Accountant located in Maharashtra providing Cost Auditing
service. Determine Place of Supply if he provides service to
a. A registered person located in Maharashtra
b. A registered person located in Karnataka
c. A non registered person located in MP
d. A non registered person whose address does not exist on record

Solution
The given cases fall under the provisions of section 12 of IGST Act, wherein the location of
supplier of service and recipient of service both are located in India.
a. Legal Provision – As per Section 12(2)(a) of IGST Act
Discussion: The above section states that where supply of service made to a registered
person the place of supply shall be the location of such person. In the above case the
recipient is located in Maharashtra; hence the place of supply shall be Maharashtra.
Conclusion: Since the service provider and place of supply are both in Maharashtra (intra –
state) CGST + SGST will be triggered.

b. Legal Provision – As per Section 12(a) of IGST Act

Discussion: The above section states that where supply of service made to a registered
person the place of supply shall be location of such person. In the above case the recipient is
located in Karnataka; hence the place of supply shall be Karnataka.
Conclusion: Since the service provider and place of supply are pertaining to different states
(inter – state) IGST will triggered.

c. Legal Provision – As per Section 12(2)(b)(i) of IGST Act

Discussion: Where supply of service is made to any person other than a registered person
the place of supply shall be the location of the recipient where the address on record exists.
In the above case the place of supply shall be MP as this address is available.
Conclusion: In the above case the service provider is located in Maharashtra and recipient is
located in MP, hence IGST will be triggered.

d. Legal Provision – As per Section 12(2)(b)(ii) of IGST Act

Discussion: Where supply is made to any person other than a registered person place of
supply shall be location of supplier of services in all other cases. In the above case the
address of recipient does not exist on record hence the place of supply shall be location of
supplier of service which is Maharashtra.
Conclusion: As the location of supplier and place of supply are both in Maharashtra CGST
+ SGST will be triggered.

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Illustration 6
Determine the place of supply of service for the following cases:
a. KTS Builders (Mumbai) is constructing a factory building for PLM Pvt. Ltd. (Kolkata), in New
Delhi.
b. Shah and Shah, an architectural firm at Kolkata, has been hired by MKF Builders of Mumbai
to draw up a plan for a high rise building to be constructed by them in Ahmedabad, Gujarat.
c. Mr. Ramesh, a Chartered Accountant, (New Delhi) travels to Mumbai for business and stays
in a hotel there.
d. Mr. X, a consulting engineer based in Mumbai, Maharashtra renders professional services in
respect of an immovable property of Mr. Y (Bangalore) located in Australia.

Solution
The given cases fall under the provisions of section 12 of IGST Act, wherein the location of
supplier of service and recipient of service both are located in India.
a. As per section 12(3) of IGST Act, the place of supply is the location of the immovable
property i.e., New Delhi.
b. As per section 12(3) of IGST Act, the place of supply is the place where the immovable
property is intended to be located i.e. Ahmedabad.
c. As per section 12(3) of the IGST Act, the place of supply of accommodation service is the
place where the hotel is located i.e., Mumbai.
d. As per section 12(3) of IGST Act, since the immovable property is located outside India,
the place of supply of service is the location of recipient i.e., Bangalore and not the place
where the immovable property is located (Australia)

Illustration 7
Determine the place of supply of services for the following cases:
a. Mega Events, an event management company at New Delhi, organizes an award function for
Shah Diamond Merchants of Ahmedabad (registered in Gujarat), at Mumbai.
b. Mega Events, an event management company at New Delhi, organizes an award function for
Shah Diamond Merchants of Ahmedabad (registered in Gujarat), at Mauritius.
c. Grand Wedding Planners (Chennai) is hired by Mr. Ramesh (unregistered person based in
Hyderabad) to plan and organize his wedding at New Delhi.
d. Grand Wedding Planners (Chennai) is hired by Mr. Ramesh (unregistered person based in
Hyderabad) to plan and organize his wedding at Seychelles

Solution
Legal provision: As per section 12(7) of IGST Act, the place of supply of services provided by
way of,:

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 CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
a. Organization of a cultural, artistic, sporting, scientific, educational or entertainment event
including supply of services in relation to a conference, fair, exhibition, celebration or similar
events; or
b. Services ancillary to organization of any of the events or services referred to in clause (a),
or assigning or sponsorship to such events,:
(i) To a registered person, shall be the location of such person;
(ii) To a person other than a registered person, shall be the place where the event is actually
held and if the event is held outside India, the place of supply shall be the location of
the recipient.
Thus, the place of supply for the given cases as per the above stated provisions shall be as
follows:
a) In the given case since the recipient is a registered person, the place of supply is the
location of the recipient, i.e. Ahmedabad.
b) In the given case since the recipient is a registered person, the place of supply is the
location of the recipient, i.e., Ahmedabad.
c) In the given case since the recipient being an unregistered person, the place of supply is the
location where the event is held i.e., New Delhi.
d) In the given case since the recipient beign an unregistered person and the event held outside
India, the place of supply is the location of the recipient i.e., Hyderabad and nto the location
where the event is held i.e., Seychelles.

Illustration 8
Determine the place of supply for the following services:
a. Mr. Amar (registered person in New Delhi) travels from Mumbai to Bangalore in Airjet flight.
Mr. Amar has bought the tickets for the journey from Airjet’s office registered in New
Delhi.
b. Mr. C (unregistered person in Chennai) has come to Delhi on a vacation. He buys preference –
paid Delhi Metro Card from Delhi Metro (New Delhi) for hassle free commute in the National
Capital Region.

Solution
Legal Provision: The place of supply of passenger transport service to:
a) A registered person shall be location of such person
b) Person other than registered person shall be place where the passenger embarks on
conveyance for a continuous journey.
i) As per section 12(9)(a) of IGST Act, the place of supply is the location of recipient
i.e., New Delhi.
ii) As per section 12(9) of IGST Act, Recipient being unregistered person, the place of
supply is the address of Mr. C i.e., Chennai. If address of Mr. C is not available with the

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Delhi Metro, the place of supply will be the location of the supplier of services i.e., New
Delhi.

Illustration 9
Determine the place of supply for the following telecommunication services:
a. Mr. X (Kolkata) gets a landline phone installed at his home from Skybel Ltd.
b. Mr. Y (Mumbai) gets a DTH installed at his home from RT Ltd.
c. Mr. D (Mumbai) takes a post – paid mobile connection in Mumbai from Skybel Ltd.
d. Mr. E (New Delhi) gets his post – paid bill paid online from Goa.
e. Mr. C (Pune) purchases a pre – paid card from a selling agent in Mumbai.

Solution
As per Section 12(11) of IGST Act, the place of supply of telecommunication services for the
given cases shall be determined.
a. The place of supply in case of fixed telecommunication line is the located where the
telecommunication line is installed i.e., Kolkata.
b. The place of supply is the location where the DTH installed i.e., Mumbai.
c. The place of supply in case of mobile connection is the location of billing address of the
recipient i.e., Mumbai.
d. The payment being made through electronic mode, the place of supply is the location of the
recipient in the records of the supplier i.e., New Delhi.
e. The place of supply is the address of the selling agent or re – seller i.e., Mumbai.

Illustration 10
AB Ltd. located in Chennai is providing taxable services to MN Ltd. who is registered in Chennai
and is located in a SEZ. Determine POPS

Solution
Legal Provisions: The above case falls within the purview of section 12(2)(a) and section 8(1)
of IGST Act.
Discussion: Location of Service Provider is Chennai. As per the above section place of supply of
services to a registered person shall be the location of such person. In the above case the Place
of Supply is Chennai.
As per Section 8(1) of IGST Act
Provided that the following supply of goods shall not be treated as intra – State supply, namely:
a. Supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit.
Hence, even though it is an Intra – State supply it will be treated as an Inter – State supply
as MN Ltd. is located in a SEZ.

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CMA VIPUL SHAH TEST - 6 PLACE OF SUPPLY
Illustration 11
a. X Ltd., located in Mumbai, Maharashtra receives order from M/s Y Ltd. located in
Ahmedabad, Gujarat for supply of one machine. Find the place of supply and applicable GST?
b. M/s Karina Ltd. incorporated in Mumbai and own a godown in Chennai. Mr. M of Mumbai
approached M/s Karina Ltd. of Mumbai for purchase of goods lying in godown at Chennai. Mr.
M further informs that he does not want delivery of goods in Mumbai. M/s Karina Ltd. issues
invoice for sale of goods in Mumbai. Find the place of supply of goods and levy of tax?

Solution
a. 1) Location of Supplier: Mumbai (Maharashtra)
2) Place of Supply: Ahmedabad (Gujarat)
Since, the movement of goods terminates at Ahmedabad. Applicable GST = IGST. As the
nature of supply is inter state supply, location of supplier = Mumbai.
b. Place of supply goods = Chennai.
IGST will be levied.
(Location of such goods at the time of the delivery to the recipient where supply does not
involve movement of goods). This place of supply is irrespective of the location of the buyer
and seller.

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