Following are some example which can helpful for determining Place of Supply :
When There is Movement of Goods
1) Where the supply involves a movement of goods, the place of supply shall be determined by the location of the goods at the time of final delivery.
Example 1- Intra-state sales
Mr. A of Nagpur, Maharashtra sells 25coolers to Mr. B of Pune, Maharashtra
The place of supply is Pune in Maharashtra. Since it is the same state CGST & SGST will be charged.
Example 2-Inter-State sales
Mr. A of Nagpur, Maharashtra sells 25coolers to Mr. B of Kolkata, West Bengal.
The place of supply is Kolkata, West Bengal. Since it is a different state IGST will be charged.
2) Where the supply involves a movement of goods, on the direction of a third party, whether as an agent or otherwise, the place of supply shall be the principle place of business of such third party, irrespective of the place of delivery of goods.
Example 3- Deliver to a 3rd party as per instructions of Buyer
A in Jaipur buys goods from Mr. B in Mumbai (Maharashtra). The buyer requests the seller to send the goods to Nagpur (Maharashtra)
In this case, it will be assumed that the buyer in Jaipur has received the goods & IGST will be charged.
place of supply: Jaipur(Rajasthan)
Example 4 – E-commerce sale
Mr. Arya of Pune, Maharashtra orders a mobile from Amazon to be delivered to his Sister in Raipur (CG) as a gift. M/s XYZ (online seller registered in Gujarat) processes the order and sends the mobile accordingly and Mr. Arya is billed by Amazon.
Similar to example 3, it will be assumed that the buyer in Pune has received the goods & IGST will be charged.
place of supply: Pune, Maharashtra
Example 5- Receiver takes the goods ex-factory
Mr. Arya of Pune, Maharashtra gets an order of 100 TV sets from Tops Management Ltd. of Chennai, Tamil Nadu. Tops Management Ltdmentions that it will arrange its own transportation and take TV sets from Mr. Arya ex-factory
Place of supply: Maharashtra
GST: CGST & SGST
As, the goods are receive ex-factory, i.e., in Maharashtra, the movement of the goods terminates for delivery to the recipient there. It is immaterial whether the receiver further transports the goods or not.
No Movement of Goods
3) Where the supply does not involve any movement of goods, then place of supply shall be the location of such goods at the time of final delivery.
Example 1- No movement of goods
AryaLtd. (Hydrabad) opens a new showroom in Telangana. It purchases a building for showroom from XYZ Realtors (Telangana) along with pre-installed workstations
Place of Supply :Telangana
GST: CGST& SGST
There is no movement of goods (work stations), so the place of supply will be the location of such goods at the time of delivery (handing over) to the receiver.
Note: There is no GST on purchase of building or part thereof.
4) Where the supply includes installation of goods at site, then place of supply shall be the place of such installation.
For e.g. Installation of telephone towers or lift in an office building
Goods Supplied on a Vessel/Conveyance
5) Where the goods are being supplied on board a vehicle, vessel, aircraft, or a train, i.e. on board a conveyance, then place of supply shall be the first location at which the goods are boarded.
Mr. vijay is travelling from Mumbai to Delhi by air. He purchases tea and snacks while on the plane. The airlines is register in both Mumbai and Delhi.
Place of Supply : Mumbai
GST: CGST& SGST
Example 2- Train
Mr. Vivek is travelling to Mumbai via train. The train starts at Delhi and stops at certain stations before Mumbai. Vivek boards the train at Ahmadabad (Gujarat) and Immediately purchases lunch on board. The lunch had be board in Delhi.
place of supply: Delhi
GST: CGST & UTGST
Imports & Exports
The place of Supply of goods:
- Imported into India will be the location of the importer.
- Exported from India shall be the location outside India.
Example 1- Import
Ms. Rani imports school bags from Australia for her shop (registered in Chennai)
place of supply: Chennai
Example 2- Export
Ms. Sunita (Mumbai) exports school bags to UK
place of supply: UK
regards: CA Monika N. Rathi