This circular provides clarification on the determination of the place of supply for goods supplied to unregistered persons, particularly in cases involving e-commerce transactions, under the newly inserted clause (ca) of Section 10(1) of the IGST Act, effective from 1st October 2023.

The circular explains that as per clause (ca), where goods are supplied to an unregistered person, the place of supply shall be the location mentioned as the address of the recipient on the invoice. If no such address is recorded, the supplier’s location shall be treated as the place of supply. Further, recording only the name of the State of the recipient on the invoice will be deemed sufficient for compliance.

It clarifies that in cases where billing and delivery addresses differ (e.g., goods ordered online with delivery in another State), the place of supply shall be the delivery address mentioned on the invoice. Suppliers are advised to record the delivery address as the recipient’s address on the invoice to determine the correct place of supply.