LOCATION OF SUPPLIER OF GOODS

[HIMANSHU SHRIMALI]

hello friends :

i have 2 query :

1. under GST. what is location of supplier of 'GOODS', ? location of supplier of 'service' has been defined but not of goods ?

2. i want to know that , whyplace of supply of good (involving movement ) supplied by registered person to un registered person ..................is location of supplier ?

[KASTURI SETHI]

Dear Querist,

You are right. Location of supplier of goods has not been defined in CGST Act, 2017.

Pl. go through the extract of the decision of AAR, Maharashtra Applicant SONKAMAL ENTERPRISES PVT. LTD reported as 2018 (12) TMI 532 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA   This throws light on your issue.

According to Section 22 of the CGST Act, every supplier is liable to be registered under this Act in the State ‘from’ where he makes a taxable supply of goods or services or both. Thus as per our understanding registration is required ‘in’ the State ‘from which’ taxable supplies are made. Registration is not required ‘in’ the State ‘to which’ taxable supplies are made. It is important to identify the ‘origin’ of supply even though GST is a ‘destination’ based tax. Tax goes to the destination-State but registration is required in the origin-State. So the location of supplier is relevant for registration. In case of goods the location of the supplier includes ‘place where goods are stored’. Hence, location of supplier of goods is where business is ordinarily carried on or where the goods themselves are located, it is the place where the supplier holds control over the goods ready to deliver. In other words, location of supplier may be understood as the location of goods ready for supply. The word ‘location’ in this phrase refers to the site or premises (geographical point) where the supplier is situated, with the goods in his control, ready to be supplied.

[HIMANSHU SHRIMALI]

THANK YOU SIR, FOR YOUR KIND REPLAY

CAN YOU ANSWER 2 QUESTION?

[KASTURI SETHI]

Reply to Q.No.2 : Govt.'s revenue is more secure in this way. Everything cannot be said on this public forum.

AI Summary

Location of supplier determines registration origin; supplier's place is where goods are stored or under supplier's control. Location of supplier of goods is not defined in the Act; for registration the supplier's location is the State from which taxable supplies are made. For goods, location includes the place where goods are stored or the place where the supplier ordinarily carries on business - the geographical premises where the supplier has control over goods ready for supply. Registration is thus required in the origin-State even though GST is a destination-based tax. A query about treating place of supply as supplier location for movements to unregistered persons was answered only by citing revenue protection.