Solved Problems of

University Examinations

llustration 3:
enters into an agreement with Q Ltd. of Jaipur
P Ltd. of Kolkata is registered under GST Rajasthan. The consideration
(Rajasthan) forsupply and installation of mobile tower in Jaipur,
agreed for this supply is 98 lakh +GST. Installation work is completed by October, 2022 with the
is the place of supply in the case? Determine
the
help of workers deputed from Kolkata. What
amount of GST payable assuming GST rate (@ I8%.
Solution:
10(1)\d) ofIGSTAct, 2017, the place of supplywill be the place of instal
According to section installation is done in .Jaipur, Rajasthan. Therefore,
lation or assembly of mobile tower. In this case
Rajasthan. Location of supplier is Kolkata. It will be treated as inter-state supply.
place of supplyis
below :
The amount of GST payable is calculated Amount )
98.00,000
Value of taxable supply
Add: GST 17.64,000
IGST @ 18%
1,15,64,000
Total

Iliustration 4 :
ofgoods to Y of Rajasthan.Determine the place of supplyand type
XofKolkata makes a supply
of GST payable. |C.U. B.Com.(Tax Hons.), 2018]
Solution:
10(1)Xa) supply involves movement of goods from Kolkata to
In this case according to section case willbe Rajasthan where the movement terminates for
Rajasthan. The place of supply in this
ofinter-state
IGST.
supply which is liable to
elivery. Hence it is a case
Ilustration 5 :
(Gujarat) sells goods to Y of Coimbatore (lamil Nadu). Before the movement of
Xof Surat What willbe place of supply andtype of GST
goods from Surat. Y sold the goods to Z of Delhi.
chargeable? [C.U. B.Com.(Tax Hons.), 2018]
 260

Solution:
In this case according to section 10(DXb), on Y's instruction (third person), goods are dispatched
by Xof Surat (Gujarat) to Zof Dellhi before the movement of goods from Surat (Gujarat). The
place of supply in this case willbe determined between X and Y ie. Gujarat and Tamil Nadu.
Therefore it is acase of inter-state supplychargeable to IGST.
lustration 6:
Xof Kolkata enters into an agreement with Yof Patna (Bihar) for installation of Mobile tower
in Ranchi (Jharkhand). What willbe the place of supplyand type of GST chargeable?
Solution :
In this case according toSection 10(1Xd) the place of supply shallbe the place of installation of
Mobile tower i.e. Ranchi (Jharkhand). Thus it will be treated as inter-state supply and X will have
to pay IGST at Kolkata.
Illustration 7:
A (based in Kolkata) is acting as a flight caterer of Air India for 10
and drinks on Air India aircraftat Kolkata airport on the flight from
years. He has loaded foods
Mumbai to Delhi via
passengerson board. Determine the place of supply and the type of GST payable. Kolkata for
Solution:
In this case according to section 10(1)(c) the place of
drinks are loaded on the aircraft and it is a case of supply will be Kolkata where foods and
and intra-state supply because A is based on Kolkata
foods and drinks are also loaded in Kolkata airport. Therefore Awill be
West Bengal SGST at Kolkata. liable to pay CGST and
Illustration 8 :
Indigo Issued a ticket/pass for travel anywhere in India to Mr.
supply in this case? Sanjay. What is the place of
Solution:
In this case ticket/pass is issued for travel
anywhere in India. Therefore, the place of
tion will not be available at the time of issue of invoice because the right to passage is for embarka
So, place of supply cannot be the place of future use.
embarkation. On
service will be determined according to the provisions of section such case, the place of supply of such
If the services are 12(2).
made to :
() Aregistered person then place of supply will be
(1) Any person,other than a registered location of the recipient.
person, then location of supply willbe:
(a) the location of the recipient ifthe location
(b) the location of the supplier of services if theof the recipient is available.
location of the recipient is not available.
Illustration 9 :
X travels from Kolkata to
Mumbai and back to Kolkata. Determine the place of
supply.
 261

Solution:
registered under GST then the place of supply will be the location of
,this case ifthe personis
the negistered person.
he person is not registered then the place of supply for the forward
journey from Kolkata
where he embarks.
NMumbai will.be Kolkata i.e. the place Mumbai to Kolkata, the place of
However as per section 12(9) in
case of return journey from
willbe Mumbai as the returnjourney has to be treated as separate journey.
sp
tlustration 10:
an architect registered in Kolkata under GST. He does not have GST registration in any
7is
StateUnion Territory. He has prepared layout of the factory of X Ltd. situated in Kota,
her visited
Construction work is completed by X Ltd. under the supervision of Z. He has
Reiasthan. charged a consultancy fee of45 lakh plus GST.
Iota. Rajasthan only on a few occasions. Z had GST payable assuming that GST rate is 18%.
Determine the place of supply and the amount of
[C.U. B.Com.(Tax Hons.), 2018]

Solution :
of supply will be the location of the
According to section 12(3)(a) of the IGST Act, place immovable property. In this case architec
nmovable properly if service is directly connected to Rajasthan. Therefore the place of
in Kota,
uralservice is related toimmovable property situated supplier is Kolkata. It becomes inter-state
of
supply of service is Kota, Rajasthan. But the location
willbe as follows.
sugply and GST to be shown in the invoice
Amount()
45,00,000
Value of taxable supply
Add: GST
8,10,000
IGST @ 18%
Total 53,10,000

llustration 11 :
S an architect located in different states of India. He
has registration in all those states. X
and
which has factories aroundthe world.Determine the place of supply
eservIces to Z Ltd.
lture of GST payable in the following cases :
Location of
Location of X (Supplier) Location of Z Ltd.
immovable property
(Recipient of service)
Delhi
(() Kolkata Rajasthan Coimbatore (TamilNadu)
Coimbatore (Tamil Nadu)
(3) Delhi
Delhi
Kerala
Kolkata USA
(4) Punjab Australia

10
 262

Solution:
be the location
According to section 12(3)Xa) of theIGST Act, place of supply will
of the
immovable property.
Place of supply Nature of GST payable
(Kolkata to Delhi) therefore IGST is payable
(1) Dellhi As itisinter-state supply supply.
CGST and Tamil Nadu GST is payable as it is intra-state
(2) Coinmbatore
(TamilNadu) (Delhi to Kerala), therefore IGSTis payable
(3) Kerala As it is inter-state supply rated supnl
services therefore it is treated as Zero
(4) USA As it isexport of
Illustration 12 : seminar
14.01.2023 for attending 2 days international
Delhion registration in Tamil Nadu and manu
Ihe CE0 of X Ltd: goes to Economics.XLtd. has GST
organized by London School of participation in the seminar, he (CEO) incurs the following
facturers fertilizers. For the purpose of
expenditure: plus GST.
Chennai-Delhi air ticket (paid to Spice Jet Airlines):28,000 senminar which ispaid to London
1. in the 2 days international
2. Delegate fee for participation time of registration in Delhi :1,00,000 plus GST.
School ofEconomics at the and hotel expenditure of?70,000 plus GST paid to
New Delhi
3. He stays in Leela Palace,
the hotel.
Delhi-Chennai air ticket paid to Air India, Delhi :R40,000 plus GST.
4. and the recipient of supply is X Ltd. GSTIN ofX Ltd.
Ltd.
Allpayments are paid in cheque by Xplace of supplyin the above mentioned (1 to 4) cases.
is given on tax invoices. Determine the
Solution:
of the
service is related to transportation of passengers covered by section 12(9)
1. This recipient of service is aregistered person then
IGST Act. According to this section if the
the place of location of the recipient of service. In this case XLtd.
place ofsupply will be
supply of service is Tamil Nadu and the
isregistered in Tamil Nadu and the place of
intra-state supply.
location of the supplier is also Tamil Nadu. Therefore, it is IGST Act. According to this
12(5)of the
2. Training related services is covered by section
section in case of supplyto a registered person place the of supply of service will be location of
supplier of service i.e. London
the recipient of service. In this case location of recipient of service is
School of Economics is New Delhi and the location of the London School of
Tamilnadu. Therefore, it is inter-state supply. Here it is assumed that
interna
Economics has taken registration in the Delhi as a casual taxable person for this
tionalconference.
to this
3. Lodging accommodation is covered by section 12(3)(b) of the IGSTAct. According
section the place of supply of service is the location of the immovable property. In this case
the locationof the hotel building is in New Delhi. Therefore the place of supply of
service is New Delhiand the location of the supplier is in New Delhi.Consequently it is
intra-state supply.
 263
la this case the place of supply of service is Tamil
Nadu. Location of supplier is
Delhi.Therefore it is inter-state supply.
ustration 13 ;
.1d is afashion house obtained its registration from Mumbai
nnizeafashion slhowin USA during end of March, 2023. For
(Maharashtra). It wants to
4inted ZLtd. (GST registered) an event management
organizing this fashion showthey
company based on Kolkata(West Ben-
ZLId. charges a consultancy fee of? 10 lakh plus GST for providing different designs for the
shion show. Find out the place of supply.
solution :
In this problem the relevant rules of section 12(7) of the IGST Act is applicable i.e.
services
ertaining to organizationof an event. In this case location of supplier i.e.Z Ltd. andlocation of
aiDient i.e. ALtd. both are in India. Therefore, the place of supply of service will be location of the
Ripient i.e. Mumbai (Maharashtra)
lustration 14 :

ALtd. (located in Kolkata) is a manufacturer of plastic sheets obtained its GST registration from
West Bengal. It sends a consignment of 1,000 plastic sheets to Dubai on March 10, 2022. These
sheets are handed over toAir India at Kolkata airport. Find out the place of supply.
olution :
In thiscase section 12(8) of the IGST Act is applicable i.e. services by way of transportation of
p0ds. If the recipient of service is a registered person, then the place of supply will be location of
tie recipient of service i.e. A Ltd. So the place of supply is Kolkata (West Bengal).
llustration 15:
he above problem suppose ALtd. is not registered and plastic sheets are handed over to the
Air India at Gaya International Airport (Bihar).
Solution :
S case as the recipient of service is not registered therefore the place of service will be the
location at which such goods are handed over for their transportation i.e. Bihar.
ut (Exercise)