Circular, 2024

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

Clredan. No— ¥50/ Fratad AT, T FY, I TR | (sfroTzoo srgem) quE fawg- 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 of goods to unregistered persons. ST T, AT #ATer, Tres 39T g1 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 of goods to unregistered persons' & faw wz afvysr s=ar 209/03/2024 HTAF: ST | Circular No.209/3/2024-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs North Block, New Delhi Dated the 26" June, 2024 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Directors General/ Directors General (All) Subject: 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 of goods to unregistered persons— Reg. Vide Notification 02/2023-Integrated Tax, dated 29" September, 2023, the provisions of the Integrated Goods and Services Tax (Amendment) Act, 2023 (31 of 2023) came into force with effect from 01.10.2023.

2; Clause (ca) has been inserted in Section 10(1) of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the “IGST Act”) with effect from 01.10.2023. The same is reproduced as under:

"(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.

Explanation.—For the purposes of this clause, recording of the name of the State of the s aid person in the invoice shall be deemed to be the recording of the address of the said perso n; it 2.1 The said provision has been inserted as a non-obstante provision overriding the provisi ons under Section 10(1)(a) or 10(1)(c) of IGST Act. The clause (ca) provides that whe re the supply of goods is made to an unregistered person, the place of supply would be the location as per the address of the said person recorded in the invoice and the location of the supplier where the address of the said person is not recorded in the invoice. An explanation has also been added to the said clause to clarify that recording the name of the State of the said person shall be deeme d to be the recording of the address of the said person.

3 Reference has been received from trade and industry seeking clarification rega rding the place of supply in terms of newly added clause (ca) of section 10(1) of the IGST Act, in case of supply of goods made to an unregistered person where billing address is different from the address of delivery of goods, especially in the context of supply being made through e-com merce platforms.

4. In order to clarify the issue and to ensure uniformity in the implementation of the provisi ons of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 hereby clarifies the'issues as unde r:

S.No. Issue Clarification Place of supply of goods (particularly being supplied through e-commerc e platform) to unregistered persons where billing address is different from the address of delivery of goods.

It Mr. A (unregistered person) located in X State places an order on an e- commerce platform for supply of a mobile phone, which is to be delivered at an address located in Y State. Mr. A, while placing the order on the e-commerce platform, provides the billing address located in X state. In such a scenario, what would be the place of supply of the As per the provisions of clause (ca) of sub- section (1) of section 10 of IGST Act, where the supply of goods is made to an unregistered person, the place of supply would be the location as per the address of the said person recorded in the invoice and the location of the supplier where the address of the said person is not recorded in the invoice. Further, as per Explanation to the said clause, recording the name of the State of the said unregistered said supply of mobile phone, whether the State pertaining to the billing address i.e. State X or the State pertaining to the delivery person on the invoice shall be deemed to be the recording of the address of the said person.

Accordingly, it is clarified that in such cases involving supply of goods to an unregistere d person, where the address of delivery of g oods recorded on the invoice is different from th e billing address of the said unregistered perso n on the invoice, the place of supply of goo ds in accordance with the provisions of clause (ca) of sub-section (1) of section 10 of IG ST Act, shall be the address of delivery of goods recorded on the invoice i.e. State Y in the present case where the delivery address is located.

Also, in such cases involving supply of good s to an unregistered person, where the billin g address and delivery address are different, th e supplier may record the delivery addres s as the address of the récipiem on the invoice for the purpose of determination of place of supply of the said supply of goods.

J S. It is requested that suitable trade notices may be issued to publicize the contents of this Circular. Difficulty, if any, in the implement ation of the above instructions may please be brought to the notice of the Board. Hindi version would f ollow.

(Sanjay Mangal)

Provisions this circular answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Uttar Pradesh Goods and Services Tax Act, 2017