TMI BlogDetermination of Place of supply of Goods [ Section 10 of IGST Act ]X X X X Extracts X X X X X X X X Extracts X X X X ..... nveyance For residual provision, Section10(2) provides that where the place of supply of goods cannot be determined as per Section 10(1). (a) Involves Movement of Goods [ Section 10(1)(a) of IGST Act, 2017 ] Nature of Supply of goods Place of Supply Supply involves the movement of goods , whether- by the supplier or the recipient or by any other person. Location of the goods at the time at which, the movement of goods terminates for delivery to the recipient. Note: - 1. Location of the recipient is insignificant for the purpose of this clause. we have to find out where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and the amount of integrated tax apportioned between the Centre and that State, and consequent non-compliance of sub-section (2) of section 17 of the Integrated Goods and Services Tax Act, 2017. 4. Accordingly, it is instructed that the registered persons making inter-State supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1 as mandated by the law. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act, 2017 Examples Example 1:- MA Pvt. Ltd. of Nasik, Maharashtra sells 10 refrigerato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either by way of transfer of title or otherwise, whether acting as an agent or otherwise, before or during movement of goods. Principal place of business of such third person, who's give direction. (It shall be deemed that the said third person has received the goods) Examples :- Example 1:- M/s X Co. registered in Noida Uttar Pradesh asks to M/s Y Co. of Ahmedabad, Gujarat to deliver 50 washing machines to its buyer M/s Z Co. at Jaipur, Rajasthan. In this case , two supplies are involved, The place of supply shall be :- First supply is between M/s Y Co. of Ahmedabad, Gujarat and M/s X Co. Noida (U.P.) Place of supply of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no movement of goods either by supplier or recipient location of such goods at the time of the delivery to the recipient; Eamples Example 1:- Sugar Pvt. Ltd. (New Delhi) has leased his machine (cost ₹ 8,00,000) to Mahagun Pvt. Ltd. (Noida, Uttar Pradesh) for production of goods on a monthly rent of ₹ 40,000. After 14 months Mahagun Pvt. Ltd. requested Sugar Pvt. Ltd. to sell the machine to it for ₹ 4,00,000 which is agreed to by Sugar Pvt. Ltd. In this case, there will be no movement of goods and the same will be sold on as is where is basis. Place of supply of goods:- The location of the machine at the time of such sale will be the i.e. Noida. Nature of transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bled or installed. Examples:- Example 1 :- Honey Refineries (Mumbai) gives a contract to PQ Ltd. (Jharkhand) to supply a machine which is required to be assembled in a power plant in its refinery located in Kutch, Gujarat. Place of supply of goods:- is the site of assembly of machine, i.e. Kutch even though Pure refineries is located in Maharashtra Nature of Transaction :- Inter state of supply [ IGST will be levied] Example 2 :- Mr. X from Noida orders a machine from Mr. Y from Ghaziabad . Mr. Y installs the machine at Mr. X's office premises at Noida. Place of supply of goods:- will be Noida (where the goods installed) Nature of transaction :- Intra state supply [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Place of supply of goods:- Goods is the location at which the goods are taken on board, i.e., New Delhi and not Jaipur where they have been sold Nature of transaction :- Intra state supply. [ CGST +SGST will be levied ] Example 2 :- Mr. Mehta ( Mumbai) is traveling on a cruise liner from Mumbai to Goa. He purchases a book from the in-house store in the cruise liner. These books were on-boarded from Mumbai. Registered place of business of the book shop is in Mumbai. Place of supply of goods:- Mumbai. Nature of transaction :- Intra state supply, [ CGST +SGST will be levied ] Example 3:- Mr. X take on board in Delhi in , Delhi to Allahbad Rajdhani Express provides meals during the J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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