Importance of Place Of Supply of Goods:

Importance of Place Of Supply of Goods:

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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-
  1. Where the supply involves movement of goods– Place of Supply is the Place where movement of Goods Terminates.
  2.  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).
  3.  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.
  4.  Where goods involve Installation / assembly at site– Place of Supply shall be the Place of such installation or assembly
  5. 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
  6. Where supply involves export & import of goods.- Goods Imported or exported are always Treated Inter state supply and IGST will be Charged.

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