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Determining the Place of Supply under GST of Goods is important since it determines the kind of tax to be collected. Article 10 of the IGST Act<\/a> specifies the provisions for establishing the domestic transaction location of supply under GST of commodities. The rules to determine the position of supply of goods other than importation and exportation shall indeed be as follows:<\/p>\n There are cases in which procurement entails commodities moving. The point where items are being shipped to the receiver in such situations is also the place of delivery. In addition, such provision may be made by the seller or the receiver, or by some other individual.<\/p>\n For Example, Atharva from Mumbai sells refrigerators from Ahmedabad to M\/s Sharma Traders. Since this supply entails moving supplies from Mumbai to Ahmedabad, Ahmedabad should also be the place of delivery. Furthermore, IGST will be paying for those supplies. This is because the supplier\u2019s position (Maharashtra) is distinct from the supply site (Gujarat).<\/p>\n Scenarios exist where a retailer supplies products on behalf of a third party to a recipient or another individual. In addition, as the handler, or otherwise, before or after the movement of goods the seller supplies these goods. Also, by the conversion of title papers to the products, or otherwise, the seller delivers the goods. The supply is considered obtained by the third party in certain circumstances. And the principal place of business of such an individual is the supply of such items.<\/p>\n For Example, Let\u2019s say Akshay has a business centre registered in Pune. He puts an order to send a package to Aditya who is at Nasik to Vipul Ltd. in New Delhi. As Akshay delivers the products through a third party to Aditya (Vipul Ltd), Pune is the delivery place. That\u2019s Akshay\u2019s reported location. In addition, since the location of the supplier (New Delhi) and the place of delivery,\u00a0Maharashtra<\/a><\/strong>\u00a0is separate, IGST will be paid for such a supply.<\/p>\n Often the provider or the receiver supplies which do not require moving products. In such cases, at the time of sale to the recipient, the place of supply is the source of merchandise.<\/p>\n For Example, Shiva goes to Chennai for a holiday from Jaipur. He buys a laptop at Chennai\u2019s Croma shop. As such delivery does not require moving goods; it is Chennai itself that is the place of supply. Chennai is the place of delivery to the receiver at the time the delivery is completed. Now that the source position is the same as the supply location, there is an intra-state supply. Therefore, it will bill\u00a0CGST<\/a>\u00a0+ SGST<\/a>.<\/p>\n The location of the supply shall be where the products are assembled or mounted at the site.<\/p>\n For Example, In his Jamshedpur plant, Candra Shekhar from Jamshedpur ordered a computer. The supplier, from Kolkata, supplies parts in different countries in the world. Finally, at Chandra Shekhar in Jamshedpur, the computer was successfully mounted. In this case, the supply place will be Jamshedpur, since the machine parts were assembled at Jamshedpur. Such a supply draws IGST because the supplier is distinct in location (West Bangladesh) and the location (Jharkhand).<\/p>\n There are also instances of deliveries of goods on a conveyance from a retailer. A submarine, an aircraft, a train, or a motor vehicle belongs to this transport. Therefore, in such situations, the point of delivery is the place where the goods are received.<\/p>\n For Example Howrah \u2013 ND Howrah During the journey from Kolkata to New Delhi, Rajdhani Express supplies food. At Mugalsarai in Uttar Pradesh, the train will take food. As the products have been accepted in Mugalsarai, Mugalsarai will be the place of supply (Uttar Pradesh).[\/vc_column_text][vc_column_text]\n
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