Place of Supply with Movement of Goods
Place of Supply without Movement of Goods
Place of Supply for Goods on Conveyance
Place of Supply for Imports and Exports
FAQs on Place of Supply
Determining the place of supply when goods are moved is essential for GST compliance.
Movement by Supplier or Buyer
When goods are moved by the supplier or buyer, the place of supply is where the goods are delivered.
Goods moved from Delhi to Mumbai: Place of supply is Mumbai.
Applicable GST: IGST if inter-state, CGST and SGST if intra-state.
Example: ₹10 lakh worth of goods moved from Delhi to Mumbai incurs IGST.
Third-Party Directed Movement
If goods are delivered to a third party's location, the place of supply is the third party's principal place of business.
Goods ordered by a third party in Chennai, delivered to Bangalore.
Place of supply: Chennai, GST: IGST.
Example: ₹5 lakh worth of goods directed to Bangalore by a Chennai entity.
Ex-Factory Sales
For ex-factory sales, the place of supply is where the goods are finally delivered.
Buyer arranges pickup from factory in Pune, delivers to Hyderabad.
Place of supply: Hyderabad, GST: IGST.
Example: ₹20 lakh worth of goods picked up in Pune, delivered to Hyderabad.
E-commerce Transactions
For e-commerce sales, the place of supply is where the goods are delivered.
Goods ordered online from Gujarat, delivered to Kolkata.
Place of supply: Kolkata, GST: IGST.
Example: ₹2 lakh worth of goods ordered online, delivered to Kolkata.
When goods are not moved, the place of supply is determined by the location of goods at delivery.
Stationary Goods
For goods that do not move, the place of supply is where they are located at the time of delivery.
Goods located in Bangalore, sold to a local buyer.
Place of supply: Bangalore, GST: CGST & SGST.
Example: ₹15 lakh worth of stationary goods sold in Bangalore.
Installation at Site
For goods installed at a site, the place of supply is the installation location.
Machinery installed in a factory in Chennai.
Place of supply: Chennai, GST: CGST & SGST.
Example: ₹30 lakh machinery installed in Chennai.
Transfer of Ownership
Ownership transfer without movement is based on the location of goods.
Ownership transferred in Delhi, no movement.
Place of supply: Delhi, GST: CGST & SGST.
Example: ₹10 lakh goods ownership transferred in Delhi.
Leased Goods
For leased goods, the place of supply is where the goods are located during the lease.
Leased equipment located in Mumbai.
Place of supply: Mumbai, GST: CGST & SGST.
Example: ₹5 lakh equipment leased in Mumbai.
Special rules apply for goods supplied on vessels, aircraft, trains, or motor vehicles.
Goods on Vessels
For goods supplied on vessels, the place of supply is the location where goods are taken on board.
Goods loaded in Kochi, supplied on a vessel.
Place of supply: Kochi, GST: CGST & SGST.
Example: ₹8 lakh goods supplied on a vessel from Kochi.
Goods on Aircraft
For goods supplied on aircraft, the place of supply is the location of boarding.
Goods supplied on a flight from Delhi.
Place of supply: Delhi, GST: CGST & SGST.
Example: ₹12 lakh goods supplied on a flight from Delhi.
Goods on Trains
For goods supplied on trains, the place of supply is the location where goods are loaded.
Goods loaded in Ahmedabad, supplied on a train.
Place of supply: Ahmedabad, GST: CGST & SGST.
Example: ₹6 lakh goods supplied on a train from Ahmedabad.
Goods on Motor Vehicles
For goods supplied on motor vehicles, the place of supply is the location of loading.
Goods loaded in Pune, supplied on a vehicle.
Place of supply: Pune, GST: CGST & SGST.
Example: ₹4 lakh goods supplied on a vehicle from Pune.
Understanding the place of supply for imports and exports is crucial for GST compliance.
Imports
For imports, the place of supply is the location of the importer.
Goods imported to Chennai.
Place of supply: Chennai, GST: IGST.
Example: ₹50 lakh goods imported to Chennai.
Exports
For exports, the place of supply is the location outside India.
Goods exported from Mumbai to Dubai.
Place of supply: Dubai, GST: Zero-rated.
Example: ₹40 lakh goods exported from Mumbai.
Deemed Exports
For deemed exports, the place of supply is the recipient's location in India.
Goods supplied to an EOU in Noida.
Place of supply: Noida, GST: IGST.
Example: ₹25 lakh goods supplied to EOU in Noida.
SEZ Supplies
For supplies to SEZs, the place of supply is the SEZ location.
Goods supplied to SEZ in Hyderabad.
Place of supply: Hyderabad, GST: Zero-rated.
Example: ₹35 lakh goods supplied to SEZ in Hyderabad.
What is the place of supply for goods delivered to a third party?
The place of supply for goods delivered to a third party is the principal place of business of the third party. For instance, if goods are delivered to a third party in Chennai, the place of supply is Chennai, and IGST is applicable.
How is the place of supply determined for ex-factory sales?
For ex-factory sales, the place of supply is where the goods are finally delivered. If goods are picked up from a factory in Pune and delivered to Hyderabad, the place of supply is Hyderabad, and IGST applies.
What GST applies to goods supplied on a vessel?
For goods supplied on a vessel, the place of supply is the location where goods are taken on board. If goods are loaded in Kochi, CGST and SGST apply for intra-state supplies.
How is the place of supply determined for imports?
For imports, the place of supply is the location of the importer in India. For example, if goods are imported to Chennai, the place of supply is Chennai, and IGST is applicable.
What is the GST treatment for exports?
Exports are zero-rated under GST. The place of supply is the location outside India. For instance, goods exported from Mumbai to Dubai are zero-rated, meaning no GST is charged.
How does GST apply to SEZ supplies?
Supplies to SEZs are zero-rated. The place of supply is the SEZ location. For example, goods supplied to an SEZ in Hyderabad are zero-rated, and no GST is charged.
What is the place of supply for goods installed at a site?
For goods installed at a site, the place of supply is the installation location. If machinery is installed in Chennai, the place of supply is Chennai, and CGST & SGST apply.
How is the place of supply determined for leased goods?
For leased goods, the place of supply is where the goods are located during the lease. If equipment is leased in Mumbai, the place of supply is Mumbai, and CGST & SGST apply.
What GST applies to e-commerce transactions?
For e-commerce transactions, the place of supply is where the goods are delivered. If goods are ordered online from Gujarat and delivered to Kolkata, IGST is applicable.
What is the place of supply for goods on aircraft?
For goods supplied on aircraft, the place of supply is the location of boarding. If goods are supplied on a flight from Delhi, CGST and SGST apply for intra-state supplies.