Clarification on the Place of Supply for Goods to Unregistered Persons: Circular No. 209/3/2024-GST
<p><span>The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 209/3/2024-GST on 26th June 2024, to provide clarifications on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Services Tax (IGST) Act, 2017. This circular addresses concerns regarding the place of supply of goods to unregistered persons, especially in the context of e-commerce transactions. Here are the key highlights:</span></p><p><span><strong>1. New Provision in IGST Act</strong></span></p><ul><li><span>Clause (ca) has been inserted in Section 10(1) of the IGST Act, effective from 1st October 2023.</span></li><li><span>This clause states that the place of supply for goods supplied to unregistered persons is the location recorded in the invoice.</span></li></ul><p><span><strong>2. Billing vs. Delivery Address</strong></span></p><ul><li><span>When the billing address and delivery address differ, the place of supply is determined by the delivery address recorded on the invoice.</span></li></ul><p><span><strong>3. E-Commerce Transactions</strong></span></p><ul><li><span>For e-commerce transactions, if goods are ordered by an unregistered person with a different billing and delivery address, the delivery address determines the place of supply.</span></li></ul><p><span><strong>4. Invoice Requirements</strong></span></p><ul><li><span>Suppliers may record the delivery address as the recipient's address on the invoice to determine the place of supply correctly.</span></li></ul><p><span><strong>5. Trade Notices</strong></span></p><ul><li><span>Suitable trade notices should be issued to publicize the contents of this circular.</span></li><li><span>Any difficulties in implementation should be reported to the Board.</span> <a href="https://cms.plasament.com/storage/circular-no-209-03-2024.pdf">circular-no-209-03-2024</a><br> </li></ul>