EXAMPLE-99  

A principal in Delhi procures an order from an agent in Mumbai for supply of goods to the recipient in Kolkata. Agent directs the principal to directly deliver the goods to the recipient with invoice. As documents of title of goods also transferred with goods by principal to agent and Agent is paid only commission for this work.  Determine the Place of supply in this transaction.

Answer

As per section 10(1)(b) of IGST Act, 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.

In view of the above provision as supply is done on the direction of agent, the first place of supply will be the principal place of agent and second place of supply will be the place of recipient.