EXAMPLE-91
AB Ltd in Uttar Pradesh procures
1000 paper reems from the XYZ Ltd in Haryana. AB Ltd arranged themselves for
transport facility for taking goods (paper reems) to the place of their factory
in Uttar Pardesh. The whole responsibilities for any loss during transit are of AB
Ltd, i.e. the recipient.
Determine place of Supply and
whether transaction of supply is in intra-state or inter- state.
Answer
Where the goods involved movement
of goods, the place of supply of goods shall
be the location of the goods at the time at which the movement of goods
terminates for delivery to the recipient.
Thus, even transport of goods
borne by the recipient even then movement of goods terminates at the place of recipient
i.e. Uttar Pardesh in the given example.Thus, place of Supply is Uttar Pardesh and the
transaction is inter-state.