CBIC Circular No. 209/3/2024-GST: Clarification on Place of Supply for Unregistered Persons

The CBIC has issued Circular No. 209/3/2024-GST dated June 26, 2024, clarifying provisions related to the place of supply of goods to unregistered persons under clause (ca) of Section 10(1) of the Integrated Goods and Services Tax Act, 2017 (IGST Act).

Effective from October 1, 2023, clause (ca) of Section 10(1) of the IGST Act stipulates that for supplies made to unregistered persons, the place of supply shall be determined based on the address recorded in the invoice issued for the supply. If the invoice does not record the address of the unregistered person, the place of supply will be the location of the supplier.

In response to queries from trade and industry, particularly regarding scenarios where the billing address differs from the delivery address in e-commerce transactions, the CBIC provides the following clarifications:

Scenario: Mr. A, an unregistered person in State X, orders a mobile phone via an e-commerce platform with delivery to State Y, providing State X as the billing address.

Clarification: The place of supply for GST purposes will be determined as per the delivery address (State Y) recorded on the invoice. This interpretation aligns with clause (ca) of Section 10(1) of the IGST Act, where the delivery address indicated on the invoice is considered the address of the unregistered person.

Additionally, the CBIC emphasizes that in cases where the billing and delivery addresses differ, the supplier should accurately record the delivery address as the recipient’s address on the invoice for determining the place of supply.