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Importance of Place Of Supply of Goods:
A) Place of Supply is very important to determine whether a transaction is a intra-state sale or inter-state sale. And accordingly SGST, CGST & IGST will be determined.
B) Situation for determining Place Of Supply of Good-
- Where the supply involves movement of goods– Place of Supply is the Place where movement of Goods Terminates.
- Where goods are delivered by the Supplier to a recipient or any other person on the direction of a third person by way of transfer of documents of title of goods – Principal place of business of third person (the place which is mentioned in the registration certificate).
- Where the supply involves no movement of goods– Place of Supply shall be the location of such goods at the time of the delivery to the recipient. For Example – This will mainly cover over the counter sale. Like when you go to mall and purchase and take delivery there itself.
- Where goods involve Installation / assembly at site– Place of Supply shall be the Place of such installation or assembly
- Where the goods are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle- Place of supply shall be Location at which such goods are taken on board. For example Goods sold in Aircraft, Cruise, etc
- Where supply involves export & import of goods.- Goods Imported or exported are always Treated Inter state supply and IGST will be Charged.