Question 25:

I need a clarification regarding Place of supply for one of my clients. The facts are as under:
 1. ABC (registered in Maharashtra) owns certain assets (“goods”) which are located at NSE Mumbai. The goods would continue to remain at NSE Mumbai after the sale.
2. ABC is selling the goods to XYZ located in Haryana on a principal – to – principal basis.
3. Further, the said sale would not involve movement of goods from one location to another as they will remain installed at NSE Mumbai.
With the above understanding, we need to determine the place of supply for the above transaction. Would it be determined in terms of Section 10(1)(b) or Section 10(1)(c) of the IGST Act?
 
10. Place of supply of goods other than supply of goods imported into, or exported from India
 
(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,––
(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;
(b) 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;
(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;
As per the above, based on the above reading of the law, the place of supply should be Maharashtra and the transaction should be an intra-state transaction.
An early response would be appreciated.

Answer:
Section 10(1) (c) specifically applies in the situation where supply does not involve movement. Yes you are right Place of Supply in your case according to this provision will be Maharashtra and the transaction will be Intra-state transaction and on which CGST and SGST should be charged.
Please note that in this case XYZ in Haryana will not get credit of CGST+SGST paid on this transaction. .(REPLY dt. 17/2/2018)