Transport service POS

This query is : Resolved

Rajkumar Gutti (Querist)
Follow

14 November 2025 A- in Tamilnadu, B- in Punjab, both are distinct person.
Named Express transporter is in Tamilnadu.
If A transport his goods to B , using Express transporter services.

Which place of supply of transport of service.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

16 November 2025 Provision: Section 12(8) of IGST Act
“The place of supply of services by way of transportation of goods, including by mail or courier, to a registered person shall be the location of such person.”

- If B is a registered person under GST, then:
- Place of supply = Punjab (location of recipient)
- Since supplier is in Tamil Nadu and place of supply is Punjab → Inter-State supply → IGST applicable

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

16 November 2025 - If B had been an unregistered person, then:
- Place of supply = Location where goods are handed over for transportation (i.e., Tamil Nadu)
- Supplier and place of supply both in Tamil Nadu → Intra-State supply → CGST + SGST applicable

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

17 November 2025 But sir if transporter raise his bill in the name of A in Tamilnadu. In this situation is POS is Tamilnadu is it Ok or wromg.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

17 November 2025 Correct - If the transporter is billing to A in Tamil Nadu, it’s an intra-state supply.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

17 November 2025 But sir is it necessary in distinct person transaction, transporter bill should raise to whom goods actual delivered. Other wise ITC should transfer to punjab unit via isd ( Bcoz ITC is attributable to Punjab unit.
In distinct unit transaction,Billing unit location is place place of supply or to whom actual goods delivered by transporter, is place of supply. Here we puzzling.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

17 November 2025 In a distinct person transaction under GST, the place of supply is determined based on the location of delivery, not the billing unit. Therefore, the transporter’s invoice should ideally be addressed to the Punjab unit (B) if the goods are delivered there.
Otherwise, ITC must be distributed via the ISD mechanism.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

17 November 2025 - For services (like transportation):
- If supplier and recipient are in different states, place of supply = location of recipient (Section 12(8), IGST Act).
- If transporter invoices A (Tamil Nadu), but goods are delivered to B (Punjab), Punjab is the actual recipient.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

17 November 2025 Ok sir, now I understand in distinct person transaction place of delivery, is the place of supply, not billing address. It means billing address must be actual delivered goods distinct unit.
Sir, lot of thanks for taking efforts for me.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

17 November 2025 You are welcome..

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

18 November 2025 In distinct unit transaction instead of billing made for transport service to whom actual goods delivered, but billing made by transporter to distinct unit who despatch goods. This billing is right. This billing method is legaly identified place of supply of service.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now