GST Yathra- 16- Place of Supply of Goods

Location of the recipient of services means:

(a) where a supply is received at a place of business for which registration has been obtained, the location of such place of business;

(b) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;

(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and

(d) in absence of such places, the location of the usual place of residence of the recipient [Section 2(17)]

Location of the supplier of services means:

(a) where a supply is made from a place of business for which registration has been obtained, the location of such place of business;

(b) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;

(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and

(d) in absence of such places, the location of the usual place of residence of the supplier [Section 2(18)]

Place of business includes

For the purposes of this Act, where a person has,––

(i) an establishment in India and any other establishment outside India;

(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or

(iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons. [Section 2(85) of CGST Act.]

Section 10-Place of supply of goods other than supply of goods imported into, or exported from India

1. Supply moved from one place to  another             

Place of Supply - The place where the movement of the goods terminates  

Eg: Mr. A of Nasik, Maharashtra sells 10 refrigerators to Mr. B of Pune, Maharashtra for delivery at Mr. B’s place of business in Pune. The place of supply is Pune in Maharashtra.

2. Supply involving movement of goods delivered to recipient on the instruction of third person – Bill to Ship to Sale

Place of Supply - Principal place of business of such third person

Eg: Mr. X (a supplier registered in Uttar Pradesh having principal place of business at Noida) asks Mr. Y of Ahmedabad, Gujarat to deliver 50 washing machines to his buyer Mr. Z at Jaipur, Rajasthan. In this case, two supplies are involved, one between Mr. X and Mr. Z and other between Mr. Y and Mr. X. While the former supply is covered under clause (a) of section 10(1), the latter one i.e., between Mr. Y and Mr. X is covered under clause (b) of section 10(1). Accordingly, in this case, the place of supply of goods is not the location of delivery of such goods (Jaipur) but the principal place of business of third person i.e., principal place of business of Mr. X located at Noida.

Supply not involving movement of goods

Place of Supply - Location of goods at the time of delivery to the recipient

Eg: Mr. A (New Delhi) has leased his machine (cost Rs 8,00,000) to Mr. B (Noida, Uttar Pradesh) for production of goods on a monthly rent of ` 40,000. After 14 months Mr. B requested Mr. A to

sell the machine to him for Rs 4,00,000, which is agreed to by Mr. A.

In this case, there will be no movement of goods and the same will be sold on as is where is basis. Thus, the location of the machine at the time of such sale will be the place of supply i.e., Noida

Supply involving installation or assembly of goods

Place of Supply - Place of such installation or assembly.

Eg: Pure Refineries (Mumbai, Maharashtra) gives a contract to PQ Ltd. (Ranchi, Jharkhand) to assemble a power plant in its Kutch, Gujarat refinery. The place of supply is the site of assembly of power plant i.e., Kutch even though Pure refineries is located in Maharashtra.

Goods supplied on board a conveyance

Place of Supply- Location where such goods have been taken on board

Eg: Ms. S, an unregistered person, (New Delhi) is travelling from New Delhi to Kanpur, Uttar Pradesh in a train. The train starts at New Delhi and stops at three stations before reaching Kanpur. The food items were loaded into the train at Aligarh (Uttar Pradesh) – 2nd Station. Ms. S buys dinner on board the train. The place of supply is the location at which the goods are taken on board i.e., Aligarh. The location at which Ms. S boards the train is irrelevant.

Section 11- Place of supply of goods imported into, or exported from India

Imports and Exports shall be treated as Inter-state supplies

The place of supply in case of export of goods is the place where they have been exported i.e., the destination outside India. (Place of exportation)

If the goods have been imported in India, the place of supply of goods is the place where the importer is located. (Place of Importer)

Eg: Ms. M imports electric kettles from China for her Kitchen Store in Noida, Uttar Pradesh. Ms. M is registered in Uttar Pradesh. The place of supply is Noida.