How to Determine the Place of Supply When there is No Movement of Goods

1. When supply does not involve movement of goods, the location of the goods at the time of delivery to the recipient is the place of supply.

For example: Rex Cars, whose registered place of business is Chennai, Tamil Nadu, opens a showroom in Mysore, Karnataka. They purchase a pre-installed generator at the premises from Rohan Generators in Mysore, Karnataka.

Location of supplier: Mysore, Karnataka

Place of supply: The supply of the generator does not require its movement. Hence, the place of supply is Mysore, Karnataka.

This is an intrastate supply, and the taxes applicable are CGST and SGST.

When supply does not involve movement of goods, the location of the goods at the time of delivery to the recipient is the place of supplyClick To Tweet

GST for transactions involving no movement of goods

2. When the goods are assembled or installed at site, the place of assembly or installation is the place of supply
When the goods are assembled or installed at site, the place of assembly or installation is the place of supplyClick To Tweet

For example: Rex Cars, whose registered place of business is Chennai, Tamil Nadu, opens a new branch in Hyderabad, Telangana. It purchases a lift, to be installed at the branch, from Ron Lifts, whose registered place of business is also Chennai, Tamil Nadu.

Location of supplier: Chennai, Tamil Nadu

Place of supply: The lift is assembled and installed at the premises of Rex Cars in Hyderabad, Telangana. Hence, place of supply is Hyderabad, Telangana.

This is an interstate supply, and the tax applicable is IGST.

Determining GST for goods assembled or installled

3. When the goods are supplied on board a mode of conveyance, the location at which the goods are taken on board is the place of supply
When the goods are supplied on board a mode of conveyance, the location at which the goods are taken on board is the place of supplyClick To Tweet

For example: A person purchases a power bank from the in-flight shopping catalogue on board a flight travelling from Kolkata to Hyderabad. The airlines has a registered place of business in Kolkata and the power bank is taken on board the flight in Kolkata.
Location of supplier: Kolkata, West Bengal
Place of supply: Kolkata, West Bengal
This is an intrastate supply, and the taxes applicable are CGST and SGST.

GST for goods supplied on board a mode of conveyance

Next-in-line:
Place of supply in case of ‘Bill-To-Ship-To’ transactions

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Pugal T & Anisha K Jose

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