IGST What is the place of supply where movement of goods is not involved?

Raju Choudhary

Staff member
Ans. Where supply does not involve movement of goods, the place of supply will be the location
of goods at the time of delivery to the recipient. Neither in the CGST Act nor in the IGST
Act, the term ‘location of supplier of goods’ has been defined. Therefore, the location of
goods where they are ready to be supplied can be understood to be the location of
supplier. Considering that the location of supplier will be location of goods, in this type of
transaction there will not be any inter-State supply since the location of the supplier and
the place of supply will be in the same State.

Example for this would be a case where the job worker develops a mould for the
production of goods for the principal and retains the mould in his place itself for production
of goods. The mould developed by the job worker is sold to the principal but the same is
retained by the job worker without causing the movement of mould from job worker’s
premises to the principal’s premises. In this case the place of supply would be job worker’s