Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Place of supply

Vatsla Alagh (1545 Points)

01 March 2019

Gold jewellery sold in delhi to an unregistered person (who is resident of J&K). Place of supply in this case?

Reply
Follow
Share

31 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 01 March 2019

J&K

apply IGST

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

M.M Sachora (Tax Professional & Advisor) (1421 Points)
Replied 01 March 2019

Place of Supply of Goods
Usually, in case of goods, the place of supply is where the goods are delivered.

So, the place of supply of goods is the place where the ownership of goods changes.

What if there is no movement of goods. In this case, the place of supply is the location of goods at the time of delivery to the recipient.

For example: In case of sales in a supermarket, the place of supply is the supermarket itself.

NOTE: If you satisfy with my reply kindly like my comment it will increase motivation to me help other people

Dharam (CA FINAL) (164 Points)
Replied 01 March 2019

J&k will be the place of supply

becz gst is a destination and consumption based tax

IGST ... will be charged

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 01 March 2019

@ Vatsla Alagh.,

Is Customer received the gold in Shop or Send it to Customer's Place...?

Vatsla Alagh (1545 Points)
Replied 01 March 2019

@ raja PM- received in shop only.. payment too was made at shop through card

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 01 March 2019

Then why Confusion for the supply...
It's just a intra state & Charge CGST and SGST...

2 Like

Vatsla Alagh (1545 Points)
Replied 01 March 2019

Received different views..!!

Padmanathan Kv (2127 Points)
Replied 01 March 2019

Where there is no movement of goods, place of supply will be the location of such goods at the time of delivery (handing over) to the receiver. Therefore place of supply is Delhi and Hence charge CGST and SGST as it is a intrastate supply

2 Like

khalid (soical work) (222 Points)
Replied 01 March 2019

yes padmannathan is correct.

Vatsla Alagh (1545 Points)
Replied 01 March 2019

What will be the scenario if such receiver is registered in J&K and still purchases the goods in delhi? In that case also POS will be delhi?

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Padmanathan Kv (2127 Points)
Replied 01 March 2019

yes even then section 10(1)(c) applies and It will be intra state only. However what practically happens is that receiver will ask for IGST bill. Maybe inorder to curb such instances, govt recently came out with notification that incase of interstate supply, place of supply is compulsory in invoice.

Dharam (CA FINAL) (164 Points)
Replied 01 March 2019

You are right sir

but after purchasing J&K resident taking these goods to J&K then IGST will be charged, m i right?

so according to Section mentioned by you it depends upon the movement of goods whether by the supplier or recipient, right?

Padmanathan Kv (2127 Points)
Replied 01 March 2019

after purchasing if J&K resident taking goods to J&K, there is no supply element and hence no tax liability

yes section 10 classifies POS on the basis of movement of goods and not on the basis of registration of supplier/receipient

1 Like