Section 10 of IGST Act 2017: Place of Supply of Goods other than EXIM Goods

Provisions under Section 10 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Place of Supply of Goods other than Supply of Goods Imported into, or Exported from India”, are as under:

Section 10 of IGST Act 2017: Place of Supply of Goods other than EXIM Goods (CHAPTER V – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH)

(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,–

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person;

(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;

(ca) where the supply of goods is made to a person other than a registered person, the place of supply shall, notwithstanding anything contrary contained in clause (a) or clause (c), be the location as per the address of the said person recorded in the invoice issued in respect of the said supply and the location of the supplier where the address of the said person is not recorded in the invoice. [Note 1]

Explanation: For the purposes of this clause, recording of the name of the State of the said person in the invoice shall be deemed to be the recording of the address of the said person. [Note 1]

(d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly;

(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed.

Amendments History:

1. In sub-section (1), Clause (ca) inserted along with Explanation, vide the IGST Amendment Atc, 2023 (Notification dated 18/08/2023), pending notification on commencement date.

Commentary on Section 10 of the IGST Act

Section 10 of the Integrated Goods and Services Tax (IGST) Act, 2017 outlines the provisions for determining the place of supply of goods, other than goods imported into or exported from India. This section plays a crucial role in determining the tax liability and is important for businesses to understand to ensure compliance. The commentary below explains the provisions in simple language.

Place of supply of goods other than EXIM goods: Section 10(1) of the IGST Act

This section establishes the rules for determining the place of supply based on different scenarios:

a) Supply involving movement of goods: If the supply involves movement of goods (by supplier, recipient, or any other person), the place of supply will be the location of the goods when the movement ends for delivery to the recipient.

b) Goods delivered on direction of a third person: If the goods are delivered by the supplier to a recipient or any other person, based on the direction of a third person (e.g., acting as an agent), before or during the movement of goods, the third person is deemed to have received the goods. The place of supply will be the principal place of business of that third person.

c) Supply not involving movement of goods: If the supply does not involve the movement of goods (by supplier or recipient), the place of supply will be the location of the goods at the time of delivery to the recipient.

d) Goods assembled or installed at site: If the goods are assembled or installed at a site, the place of supply will be the location of the installation or assembly.

e) Goods supplied on board a conveyance: If the goods are supplied on board a conveyance (e.g., vessel, aircraft, train or motor vehicle), the place of supply will be the location where the goods are taken on board.

Determination when place of supply cannot be determined: Section 10(2) of the IGST Act

If the place of supply cannot be determined using the above rules, it should be determined in a manner prescribed by the government. This provision allows for flexibility in case of unique or complex situations not covered by the rules mentioned in Section 10(1).

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Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.