Clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 relating to place of supply

Circular No.: 209/03/2024-GST
Date of Circular: 26th June 2024
Relevant Sections and Rules:

• IGST Act, 2017: Section 10(1)(ca) – Place of supply for goods to unregistered persons
• CGST Act, 2017: Section 168(1) – Power to issue instructions
• Notification: No. 02/2023-Integrated Tax dated 29.09.2023

Summary of Clarification Provided:

1. Determination of Place of Supply Under Section 10(1)(ca) – Supply to Unregistered Persons:
   Effective from 01.10.2023, Section 10(1)(ca) was inserted in the IGST Act, overriding clauses (a) and (c), to provide that in case of supply of goods to an unregistered person, the place of supply shall be:

• The address of the unregistered person as recorded in the invoice; or
• If no address is recorded, then the location of the supplier.

Explanation: Mentioning the State name of the unregistered recipient in the invoice shall be deemed as sufficient address recording for determining place of supply.

2. Clarification in E-Commerce Scenario – Delivery vs Billing Address:

Example:

• Mr. A (unregistered) in State X places an order on an e-commerce platform for a mobile phone.
• The delivery address is in State Y, and the billing address is in State X.

Clarification Issued:

• As per Section 10(1)(ca), the place of supply shall be the delivery address (State Y) if it is recorded in the invoice.
• Even if the billing address differs, the delivery address governs the place of supply, ensuring proper tax jurisdiction.
• The supplier may record the delivery address as the recipient’s address in the invoice to align with the correct place of supply.

Source: Circular No.: 209/03/2024-GSTcccc