Taxation - GST Ch 04: Place Of Supply - Test 2: answer key

Question 1 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. Vikramaditya Tech Labs LLP (VTL) is a registered person in Karnataka with a branch in Maharashtra (separately registered). During FY 2026-27, VTL provided the following services: (i) Management consultancy services to Nandini Real Estates Pvt Ltd (NREPL), a registered person in Karnataka, for ₹12,00,000. (ii) Interior design services to Aryan Steels Ltd., a registered person in Jharkhand, for a factory building in Jharkhand, for ₹8,00,000. (iii) Architectural services for a hotel building to be constructed in Goa to Smt. Anuradha Sen, an unregistered person whose address is not available in VTL's records, for ₹6,00,000. (iv) Catering services for a wedding reception in Tamil Nadu to Mr. Rohan, an unregistered person whose address is available in records (Kerala), for ₹4,00,000. (v) Fitness training services at VTL's gym in Karnataka to Ms. Priya, an unregistered person whose address is available in records (Karnataka), for ₹1,00,000. (vi) Construction of a bridge across a river between Karnataka and Maharashtra. The contract value is ₹80,00,000. The bridge length in Karnataka is 300 meters and in Maharashtra is 200 meters. The contract does not specify state-wise value. All amounts are exclusive of GST.

For transaction (i) of management consultancy services provided by VTL to NREPL, determine the place of supply.

1. Tamil Nadu
2. Maharashtra
3. Jharkhand
4. Karnataka (correct answer)

Answer: D — Karnataka

Explanation. Step 1: Management consultancy is not a service specified in sub-sections (3) to (14) of Section 12. Step 2: The recipient NREPL is a registered person. Step 3: Under the general rule in Section 12(2)(a), place of supply for B2B services is the location of the registered recipient. Step 4: NREPL is located in Karnataka. Therefore, place of supply is Karnataka.

Where it goes wrong. Selecting Maharashtra because VTL has a branch there, or selecting the location where services are performed.

Authority. Section 12(2)(a) of the IGST Act, 2017

Question 2 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

For transaction (iii) of architectural services for a hotel building in Goa provided to Smt. Anuradha Sen (unregistered, address not available in records), determine the place of supply.

1. Karnataka
2. Goa (correct answer)
3. Location of supplier's branch in Maharashtra
4. Kerala

Answer: B — Goa

Explanation. Step 1: Architectural services directly in relation to an immovable property are covered by Section 12(3)(a). Step 2: Under Section 12(3)(a), place of supply is the location of the immovable property. Step 3: The hotel building is to be constructed in Goa. Step 4: Therefore, place of supply is Goa, regardless of the recipient being unregistered and address not being available. The general rule in Section 12(2)(b) does not apply because this is a specified service.

Where it goes wrong. Applying the general rule for unregistered recipients and selecting the supplier's location because the address is not available.

Authority. Section 12(3)(a) of the IGST Act, 2017

Question 3 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

For transaction (iv) of catering services for a wedding reception in Tamil Nadu, determine the place of supply.

1. Kerala
2. Karnataka
3. Location of supplier
4. Tamil Nadu (correct answer)

Answer: D — Tamil Nadu

Explanation. Step 1: Catering services are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The catering services are performed at the wedding reception in Tamil Nadu. Step 4: Therefore, place of supply is Tamil Nadu, even though the recipient's address is in Kerala.

Where it goes wrong. Selecting Kerala because the unregistered recipient's address is available in records, applying the general rule instead of the specific rule.

Authority. Section 12(4) of the IGST Act, 2017

Question 4 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

For transaction (vi) of construction of a bridge between Karnataka and Maharashtra, what is the place of supply and how is the value of ₹80,00,000 apportioned between the States?

1. Only Karnataka, as the supplier is registered there
2. Karnataka ₹40,00,000; Maharashtra ₹40,00,000
3. Karnataka ₹32,00,000; Maharashtra ₹48,00,000
4. Karnataka ₹48,00,000; Maharashtra ₹32,00,000 (correct answer)

Answer: D — Karnataka ₹48,00,000; Maharashtra ₹32,00,000

Explanation. Step 1: The bridge is an immovable property located in more than one State. Step 2: Under the Explanation to Section 12(3), the supply is deemed to be made in each State in proportion to the value determined per contract; absent contract, Rule 4 of IGST Rules applies. Step 3: For services other than lodging, Rule 4 uses the area of the immovable property lying in each State. For a bridge, length is the relevant measure: 300m in Karnataka and 200m in Maharashtra, ratio 3:2. Step 4: ₹80,00,000 × 3/5 = ₹48,00,000 for Karnataka; ₹80,00,000 × 2/5 = ₹32,00,000 for Maharashtra.

Where it goes wrong. Apportioning equally or using the supplier's location, or applying the number of nights rule applicable to lodging.

Authority. Explanation to Section 12(3) of the IGST Act, 2017; Rule 4 of the IGST Rules, 2017

Question 5 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. Nandini Real Estates Pvt Ltd (NREPL) is a registered person in Karnataka operating hotels and resorts. During FY 2026-27, NREPL provided the following services: (i) A consolidated package for stay in its hotels in Karnataka (3 nights) and Goa (2 nights) to Mr. Aryan, an unregistered person, for ₹50,000. The contract does not specify state-wise value. (ii) A banquet hall in its Karnataka hotel for a marriage reception to Smt. Anuradha Sen, an unregistered person, for ₹2,00,000. (iii) Interior decoration services for a shopping mall in Karnataka to Vikramaditya Tech Labs LLP (VTL), a registered person in Maharashtra, for ₹10,00,000. (iv) Restaurant services at its Goa hotel to Mr. Rohan, an unregistered person whose address is available in records (Maharashtra), for ₹1,50,000. (v) Beauty treatment services at its salon in Karnataka to Ms. Priya, an unregistered person whose address is not available in records, for ₹80,000. (vi) Management consultancy services to Aryan Steels Ltd., a registered person in Jharkhand, for ₹5,00,000. All amounts are exclusive of GST.

For transaction (i) of a consolidated hotel stay package (3 nights in Karnataka, 2 nights in Goa) for ₹50,000, how is the place of supply and value determined?

1. Only Karnataka as the supplier is registered there
2. Goa ₹50,000 as the last stay is in Goa
3. Karnataka ₹25,000; Goa ₹25,000 equally
4. Karnataka ₹30,000; Goa ₹20,000 (correct answer)

Answer: D — Karnataka ₹30,000; Goa ₹20,000

Explanation. Step 1: Lodging accommodation by a hotel is covered by Section 12(3)(b). Step 2: Where the immovable property is located in more than one State, the Explanation to Section 12(3) requires apportionment. Step 3: For lodging accommodation, Rule 4 of IGST Rules prescribes the number of nights stayed in each State. Step 4: 3 nights in Karnataka and 2 nights in Goa, ratio 3:2. ₹50,000 × 3/5 = ₹30,000 for Karnataka; ₹50,000 × 2/5 = ₹20,000 for Goa. Place of supply is both States for their respective portions.

Where it goes wrong. Apportioning by area or equally, or selecting only one State based on where the booking was made.

Authority. Explanation to Section 12(3) of the IGST Act, 2017; Rule 4 of the IGST Rules, 2017

Question 6 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

For transaction (ii) of a banquet hall in Karnataka for a marriage reception, determine the place of supply.

1. Karnataka (correct answer)
2. Maharashtra
3. Goa
4. Jharkhand

Answer: A — Karnataka

Explanation. Step 1: Accommodation in an immovable property for organising a marriage or reception is covered by Section 12(3)(c). Step 2: Under Section 12(3), place of supply is the location of the immovable property. Step 3: The banquet hall is in Karnataka. Step 4: Therefore, place of supply is Karnataka, irrespective of the recipient's location or registration status.

Where it goes wrong. Selecting the recipient's location or applying the general rule for unregistered persons.

Authority. Section 12(3)(c) of the IGST Act, 2017

Question 7 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

For transaction (iv) of restaurant services at the Goa hotel to Mr. Rohan (unregistered, address available in Maharashtra), determine the place of supply.

1. Maharashtra
2. Goa (correct answer)
3. Karnataka
4. Location of supplier's registered office

Answer: B — Goa

Explanation. Step 1: Restaurant services are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The restaurant services are performed at the Goa hotel. Step 4: Therefore, place of supply is Goa, even though the unregistered recipient's address is available in Maharashtra and even though the supplier is registered in Karnataka.

Where it goes wrong. Applying the general rule for unregistered recipients and selecting Maharashtra because the address is available.

Authority. Section 12(4) of the IGST Act, 2017

Question 8 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

For transaction (vi) of management consultancy services to Aryan Steels Ltd., a registered person in Jharkhand, determine the place of supply.

1. Karnataka
2. Maharashtra
3. Jharkhand (correct answer)
4. Goa

Answer: C — Jharkhand

Explanation. Step 1: Management consultancy is not a specified service under sub-sections (3) to (14) of Section 12. Step 2: The recipient Aryan Steels Ltd. is a registered person in Jharkhand. Step 3: Under the general rule in Section 12(2)(a), place of supply for B2B services is the location of the registered recipient. Step 4: Therefore, place of supply is Jharkhand.

Where it goes wrong. Selecting Karnataka because the supplier is located there, or Maharashtra because of the branch.

Authority. Section 12(2)(a) of the IGST Act, 2017

Question 9 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Mr. Karan, an unregistered person whose address is available in the supplier's records, avails event management services for a private party. The supplier is located in Delhi and the party is held in Gurugram, Haryana. Determine the place of supply.

1. Delhi (correct answer)
2. Gurugram
3. Location of the event manager's registered office
4. Location of the party venue's registered owner

Answer: A — Delhi

Explanation. Step 1: Event management services for a private party are not covered by any specific rule in sub-sections (3) to (14) of Section 12. Step 2: The recipient is unregistered, but his address is available in the supplier's records. Step 3: Under Section 12(2)(b)(i), place of supply is the location of the unregistered recipient where the address on record exists. Step 4: Mr. Karan's address is available in records; assume it is Delhi. Therefore, place of supply is Delhi, not the event venue in Gurugram.

Where it goes wrong. Selecting Gurugram because the service is physically performed there, applying the wrong proxy.

Authority. Section 12(2)(b)(i) of the IGST Act, 2017

Question 10 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Ms. Riya, an unregistered person, avails beauty treatment services at a salon in Mumbai. Her address is not available in the salon's records. Determine the place of supply.

1. Location of the salon in Mumbai
2. Ms. Riya's residence, if known
3. Location of the supplier's registered office
4. Mumbai, as services are performed there (correct answer)

Answer: D — Mumbai, as services are performed there

Explanation. Step 1: Beauty treatment services are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The beauty treatment is performed at the salon in Mumbai. Step 4: Therefore, place of supply is Mumbai, regardless of whether the unregistered recipient's address is available in records. The general rule in Section 12(2)(b)(ii) (location of supplier when address not available) does not apply because this is a specified service.

Where it goes wrong. Applying the general rule and selecting the supplier's location because the address is not available, ignoring the specific rule.

Authority. Section 12(4) of the IGST Act, 2017

Question 11 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier in Delhi provides interior decoration services for an office building in Noida to a registered recipient in Mumbai. Determine the place of supply.

1. Delhi
2. Mumbai
3. Noida (correct answer)
4. Location of the supplier's branch

Answer: C — Noida

Explanation. Step 1: Interior decoration services directly in relation to an immovable property are covered by Section 12(3)(a). Step 2: Under Section 12(3)(a), place of supply is the location of the immovable property. Step 3: The office building is in Noida. Step 4: Therefore, place of supply is Noida, even though the recipient is registered in Mumbai and the supplier is in Delhi. The general rule for B2B services does not apply because this is a specified service.

Where it goes wrong. Selecting Mumbai because the recipient is registered, applying the general rule instead of the specific rule.

Authority. Section 12(3)(a) of the IGST Act, 2017

Question 12 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An architect in Chennai provides architectural services for a building to be constructed in Colombo, Sri Lanka, to a registered recipient in Bengaluru. Determine the place of supply.

1. Chennai
2. Colombo
3. Bengaluru (correct answer)
4. Location of the architect's registered office

Answer: C — Bengaluru

Explanation. Step 1: Architectural services directly in relation to an immovable property are covered by Section 12(3)(a). Step 2: The proviso to Section 12(3) states that if the immovable property is located or intended to be located outside India, place of supply is the location of the recipient. Step 3: The building is in Colombo, outside India, and the recipient is in Bengaluru. Step 4: Therefore, place of supply is Bengaluru.

Where it goes wrong. Selecting Colombo because that is where the property is located, ignoring the proviso for property outside India.

Authority. Section 12(3) proviso of the IGST Act, 2017

Question 13 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A hotel in Manali provides a 4-night stay package to a guest, with 2 nights in a houseboat in Kerala and 2 nights in a hotel in Karnataka. The consolidated amount is ₹40,000. Determine the place of supply and value apportionment.

1. Kerala ₹20,000; Karnataka ₹20,000 (correct answer)
2. Kerala ₹40,000 as houseboat is unique
3. Karnataka ₹30,000; Kerala ₹10,000
4. Only Karnataka as the supplier is registered there

Answer: A — Kerala ₹20,000; Karnataka ₹20,000

Explanation. Step 1: Lodging accommodation by a hotel and houseboat is covered by Section 12(3)(b). Step 2: Where the property/vessel is located in more than one State, apportionment is required. Step 3: For houseboat or vessel, Rule 4 of IGST Rules uses time spent in each State. Here, 2 nights in Kerala houseboat and 2 nights in Karnataka hotel, ratio 2:2 = 1:1. Step 4: ₹40,000 × 1/2 = ₹20,000 for Kerala; ₹40,000 × 1/2 = ₹20,000 for Karnataka.

Where it goes wrong. Apportioning by area or applying the number of nights only to hotel and not to houseboat, or ignoring the houseboat rule.

Authority. Explanation to Section 12(3) of the IGST Act, 2017; Rule 4 of the IGST Rules, 2017

Question 14 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A fitness centre in Pune provides fitness training services to a registered company in Mumbai for its employees. Determine the place of supply.

1. Mumbai
2. Pune (correct answer)
3. Location of the fitness centre's registered office
4. Location of the employees' residence

Answer: B — Pune

Explanation. Step 1: Fitness services are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The fitness training is performed at the centre in Pune. Step 4: Therefore, place of supply is Pune, even though the recipient is a registered company in Mumbai. The general rule for B2B services does not apply because this is a specified service.

Where it goes wrong. Selecting Mumbai because the recipient is registered, applying the general rule instead of the specific rule.

Authority. Section 12(4) of the IGST Act, 2017

Question 15 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier provides personal grooming services to an unregistered person at the customer's home in Delhi. The supplier's salon is in Gurugram. The customer's address is not available in records. Determine the place of supply.

1. Gurugram
2. Delhi (correct answer)
3. Location of the supplier's registered office
4. Location of the customer's bank

Answer: B — Delhi

Explanation. Step 1: Personal grooming services are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The services are performed at the customer's home in Delhi. Step 4: Therefore, place of supply is Delhi, even though the supplier is in Gurugram and the customer's address is not available in records. The general rule for unregistered recipients does not apply because this is a specified service.

Where it goes wrong. Applying the general rule for unregistered recipients with no address and selecting Gurugram, the supplier's location.

Authority. Section 12(4) of the IGST Act, 2017

Question 16 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A company in Mumbai provides event management services for a conference in Bengaluru to a registered recipient in Chennai. Determine the place of supply.

1. Mumbai
2. Bengaluru
3. Chennai (correct answer)
4. Location of the conference venue's owner

Answer: C — Chennai

Explanation. Step 1: Event management services for a conference are not covered by the specific rules in Section 12(3) or 12(4); they fall under the general rule in Section 12(2). Step 2: The recipient is a registered person in Chennai. Step 3: Under Section 12(2)(a), place of supply for B2B services is the location of the registered recipient. Step 4: Therefore, place of supply is Chennai, not the venue in Bengaluru.

Where it goes wrong. Selecting Bengaluru because the event is held there, applying the place of performance instead of the general rule.

Authority. Section 12(2)(a) of the IGST Act, 2017

Question 17 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier provides estate agent services for a property in Pune to an unregistered buyer whose address is not available in records. Determine the place of supply.

1. Pune (correct answer)
2. Location of the supplier
3. Location of the buyer's bank
4. Mumbai

Answer: A — Pune

Explanation. Step 1: Estate agent services directly in relation to an immovable property are covered by Section 12(3)(a). Step 2: Under Section 12(3)(a), place of supply is the location of the immovable property. Step 3: The property is in Pune. Step 4: Therefore, place of supply is Pune, regardless of the recipient being unregistered and address not available in records. The general rule in Section 12(2)(b)(ii) does not apply because this is a specified service.

Where it goes wrong. Applying the general rule for unregistered recipients with no address and selecting the supplier's location.

Authority. Section 12(3)(a) of the IGST Act, 2017

Question 18 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier in Delhi provides construction services for a building in Noida to a registered recipient in Gurugram. The contract does not specify state-wise value. The building area is 10,000 sq ft in Noida. Determine the place of supply.

1. Delhi
2. Gurugram
3. Noida (correct answer)
4. Location of the supplier's registered office

Answer: C — Noida

Explanation. Step 1: Construction services directly in relation to an immovable property are covered by Section 12(3)(a). Step 2: Under Section 12(3)(a), place of supply is the location of the immovable property. Step 3: The building is in Noida. Step 4: Therefore, place of supply is Noida. There is no apportionment because the property is entirely in one State. The general rule for B2B services does not apply because this is a specified service.

Where it goes wrong. Selecting Gurugram because the recipient is registered, applying the general rule instead of the specific rule.

Authority. Section 12(3)(a) of the IGST Act, 2017

Question 19 · 2 marks · Taxation - GST Ch 04: Place Of Supply · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A hotel in Jaipur provides a 5-night stay to a guest, with 3 nights in Jaipur and 2 nights in a hotel in Udaipur. The consolidated amount is ₹60,000. Determine the place of supply and value apportionment.

1. Jaipur ₹36,000; Udaipur ₹24,000 (correct answer)
2. Jaipur ₹30,000; Udaipur ₹30,000 equally
3. Udaipur ₹60,000 as the last stay is there
4. Only Jaipur as the supplier is registered there

Answer: A — Jaipur ₹36,000; Udaipur ₹24,000

Explanation. Step 1: Lodging accommodation by a hotel is covered by Section 12(3)(b). Step 2: The property is in more than one State; apportionment is required. Step 3: For lodging, Rule 4 uses number of nights. 3 nights in Jaipur and 2 nights in Udaipur, ratio 3:2. Step 4: ₹60,000 × 3/5 = ₹36,000 for Jaipur; ₹60,000 × 2/5 = ₹24,000 for Udaipur.

Where it goes wrong. Apportioning equally or using area, or selecting only the first or last location.

Authority. Explanation to Section 12(3) of the IGST Act, 2017; Rule 4 of the IGST Rules, 2017

Question 20 · 2 marks · Taxation - GST Ch 04: Place Of Supply · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A supplier provides health services including cosmetic surgery at a clinic in Delhi to an unregistered patient whose address is available in records (Noida). Determine the place of supply.

1. Noida
2. Delhi (correct answer)
3. Location of the supplier's registered office
4. Location of the patient's bank

Answer: B — Delhi

Explanation. Step 1: Health services including cosmetic and plastic surgery are specifically covered under Section 12(4). Step 2: Under Section 12(4), place of supply is the location where the services are actually performed. Step 3: The surgery is performed at the clinic in Delhi. Step 4: Therefore, place of supply is Delhi, even though the unregistered patient's address is available in Noida. The general rule for unregistered recipients does not apply because this is a specified service.

Where it goes wrong. Selecting Noida because the unregistered recipient's address is available, applying the general rule instead of the specific rule.

Authority. Section 12(4) of the IGST Act, 2017