Taxation - GST Ch 04: Place Of Supply - Test 3: 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 providing training and event management services. During FY 2026-27, VTL provided the following services: (i) Training on GST to Nandini Real Estates Pvt Ltd (NREPL), a registered person in Karnataka, at VTL's training centre in Karnataka, for ₹5,00,000. (ii) Performance appraisal services to Aryan Steels Ltd., a registered person in Jharkhand, for its employees at Aryan's office in Jharkhand, for ₹3,00,000. (iii) Training to Smt. Anuradha Sen, an unregistered person in Kerala, at VTL's centre in Karnataka, for ₹1,00,000. (iv) Admission to a cultural event in Tamil Nadu for Mr. Rohan, an unregistered person in Kerala (address available in records), for ₹10,00,000. (v) Organized a sporting event in Maharashtra for Ms. Priya, an unregistered person whose address is not available in records, for ₹8,00,000. (vi) Provided sponsorship services for a conference in Goa to Sunrise Hospitality Ltd., a registered person in Goa, for ₹15,00,000. All amounts are exclusive of GST. VTL raised invoices for all services in the same month. VTL's training centre is in Bengaluru. The cultural event in Tamil Nadu was held on 15 August 2026. The sporting event in Maharashtra was held on 10 September 2026. The conference in Goa was held on 5 October 2026. Sunrise Hospitality Ltd. is registered in Goa.

For transaction (i) of training on GST provided by VTL to NREPL, a registered person in Karnataka, determine the place of supply.

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

Answer: A — Karnataka

Explanation. Step 1: Training services are specifically covered under Section 12(5). Step 2: Under Section 12(5)(a), where training is provided to a registered person, place of supply is the location of such registered person. Step 3: NREPL is registered in Karnataka. Step 4: Therefore, place of supply is Karnataka, irrespective of where the training is performed.

Where it goes wrong. Selecting the location where training is actually performed (Karnataka in this case) but for the wrong reason; or selecting the recipient's location only if it differs.

Authority. Section 12(5)(a) of the IGST Act, 2017

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

For transaction (iii) of training provided by VTL to Smt. Anuradha Sen, an unregistered person in Kerala, at VTL's centre in Karnataka, determine the place of supply.

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

Answer: B — Karnataka

Explanation. Step 1: Training services are covered under Section 12(5). Step 2: Under Section 12(5)(b), where training is provided to a person other than a registered person, place of supply is the location where the services are actually performed. Step 3: The training is performed at VTL's centre in Karnataka. Step 4: Therefore, place of supply is Karnataka, even though the recipient's address is in Kerala.

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

Authority. Section 12(5)(b) of the IGST Act, 2017

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

For transaction (iv) of admission to a cultural event in Tamil Nadu for Mr. Rohan, an unregistered person in Kerala (address available in records), determine the place of supply.

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

Answer: B — Tamil Nadu

Explanation. Step 1: Admission to a cultural event is specifically covered under Section 12(6). Step 2: Under Section 12(6), place of supply is the place where the event is actually held. Step 3: The cultural event is held in Tamil Nadu. Step 4: Therefore, place of supply is Tamil Nadu, regardless of the recipient's location or registration status.

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

Authority. Section 12(6) of the IGST Act, 2017

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

For transaction (v) of organizing a sporting event in Maharashtra for Ms. Priya, an unregistered person whose address is not available in records, determine the place of supply.

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

Answer: A — Maharashtra

Explanation. Step 1: Organization of a sporting event is covered under Section 12(7). Step 2: Under Section 12(7)(ii), where the service is provided to a person other than a registered person, place of supply is the place where the event is actually held. Step 3: The sporting event is held in Maharashtra. Step 4: Therefore, place of supply is Maharashtra, even though the recipient's address is not available in records. The general rule for unregistered persons without address 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 (Karnataka).

Authority. Section 12(7)(ii) of the IGST Act, 2017

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

Scenario. Nandini Real Estates Pvt Ltd (NREPL) is a registered person in Karnataka engaged in transportation and financial services. During FY 2026-27, NREPL provided the following services: (i) Goods transportation services to Aryan Steels Ltd., a registered person in Jharkhand, for transporting goods from Karnataka to Jharkhand, for ₹4,00,000. (ii) Goods transportation services to Mr. Aryan, an unregistered person, for transporting household goods from Karnataka to Tamil Nadu, for ₹1,50,000. The goods were handed over to NREPL in Karnataka on 5 July 2026. (iii) Passenger transportation services to Vikramaditya Tech Labs LLP (VTL), a registered person in Maharashtra, for its employees' travel from Karnataka to Maharashtra, for ₹2,00,000. (iv) Passenger transportation services to Ms. Anuradha Sen, an unregistered person, for travel from Karnataka to Kerala, for ₹1,00,000. She embarked in Karnataka on 12 August 2026. (v) Banking services (loan processing) to Smt. Priya, an unregistered person whose address is not available in records, at NREPL's bank branch in Karnataka, for ₹50,000. (vi) Stock broking services to Mr. Rohan, an unregistered person whose address is available in records (Maharashtra), for ₹80,000. All amounts are exclusive of GST.

For transaction (i) of goods transportation services provided by NREPL to Aryan Steels Ltd., a registered person in Jharkhand, determine the place of supply.

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

Answer: B — Jharkhand

Explanation. Step 1: Goods transportation services are covered under Section 12(8). Step 2: Under Section 12(8)(a), where the service is provided to a registered person, place of supply is the location of such registered person. Step 3: Aryan Steels Ltd. is registered in Jharkhand. Step 4: Therefore, place of supply is Jharkhand, not the location where goods were handed over or delivered.

Where it goes wrong. Selecting the location where goods were handed over for transportation (Karnataka), applying the rule for unregistered recipients.

Authority. Section 12(8)(a) of the IGST Act, 2017

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

For transaction (ii) of goods transportation services provided by NREPL to Mr. Aryan, an unregistered person, where goods were handed over to NREPL in Karnataka, determine the place of supply.

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

Answer: A — Karnataka

Explanation. Step 1: Goods transportation services are covered under Section 12(8). Step 2: Under Section 12(8)(b), where the service is provided to a person other than a registered person, place of supply is the location at which such goods are handed over for their transportation. Step 3: The goods were handed over to NREPL in Karnataka. Step 4: Therefore, place of supply is Karnataka, not the destination in Tamil Nadu.

Where it goes wrong. Selecting Tamil Nadu because that is the destination, applying the movement rule instead of the specific rule.

Authority. Section 12(8)(b) of the IGST Act, 2017

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

For transaction (iv) of passenger transportation services provided to Ms. Anuradha Sen, an unregistered person, who embarked in Karnataka, determine the place of supply.

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

Answer: B — Karnataka

Explanation. Step 1: Passenger transportation services are covered under Section 12(9). Step 2: Under Section 12(9)(b), where the service is provided to a person other than a registered person, place of supply is the place where the passenger embarks on the conveyance for a continuous journey. Step 3: Ms. Anuradha Sen embarked in Karnataka. Step 4: Therefore, place of supply is Karnataka, not the destination in Kerala.

Where it goes wrong. Selecting Kerala because that is the destination, applying the wrong proxy.

Authority. Section 12(9)(b) of the IGST Act, 2017

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

For transaction (v) of banking services provided to Smt. Priya, an unregistered person whose address is not available in records, determine the place of supply.

1. Karnataka (correct answer)
2. Maharashtra
3. Location of recipient if known
4. Location of supplier's head office

Answer: A — Karnataka

Explanation. Step 1: Banking services are covered under Section 12(12). Step 2: Under Section 12(12), place of supply is the location of the recipient on the records of the supplier. Step 3: If the location of the recipient is not on the records of the supplier, place of supply is the location of the supplier. Step 4: Smt. Priya's address is not available in records. NREPL's bank branch is in Karnataka. Therefore, place of supply is Karnataka.

Where it goes wrong. Selecting a location based on the recipient's known residence if assumed, or ignoring the proviso for missing recipient location.

Authority. Section 12(12) 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. Arjun travels from Mumbai to Delhi by flight, with a stopover at Jaipur for 3 hours to change flights. The ticket is a single ticket issued at the same time for the entire journey. Determine the place of supply of the passenger transportation service if Mr. Arjun is an unregistered person.

1. Jaipur, as it is the stopover
2. Delhi, as it is the destination
3. Mumbai, as it is the embarkation point for the continuous journey (correct answer)
4. Location of the airline's registered office

Answer: C — Mumbai, as it is the embarkation point for the continuous journey

Explanation. Step 1: Under Section 12(9)(b), place of supply for unregistered passenger is the place where the passenger embarks on the conveyance for a continuous journey. Step 2: A continuous journey is defined in Section 2(3) as a journey with one or more tickets issued at the same time, involving no stopover. Step 3: A stopover means a place where a passenger can disembark to transfer or break journey. Step 4: Here, the stopover at Jaipur is for changing flights, which is part of the same continuous journey. Therefore, embarkation point is Mumbai. Place of supply is Mumbai.

Where it goes wrong. Selecting Jaipur because it is a stopover, or Delhi because it is the destination.

Authority. Section 12(9)(b) of the IGST Act, 2017; Section 2(3) of the IGST Act, 2017

Question 10 · 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 transporter in Delhi provides goods transportation services to an unregistered person in Haryana. The goods are handed over to the transporter at a warehouse in Noida, Uttar Pradesh. Determine the place of supply.

1. Delhi
2. Haryana
3. Noida, Uttar Pradesh (correct answer)
4. Location of the transporter's registered office

Answer: C — Noida, Uttar Pradesh

Explanation. Step 1: Goods transportation services to unregistered person are covered under Section 12(8)(b). Step 2: Place of supply is the location where goods are handed over for transportation. Step 3: Goods are handed over at Noida, Uttar Pradesh. Step 4: Therefore, place of supply is Noida, Uttar Pradesh.

Where it goes wrong. Selecting Delhi because the transporter is located there, or Haryana because the recipient is located there.

Authority. Section 12(8)(b) 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.

An event management company in Mumbai organizes a business conference in Pune for a registered company in Bengaluru. Determine the place of supply of the organization of event service.

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

Answer: C — Bengaluru

Explanation. Step 1: Organization of a business conference is covered under Section 12(7). Step 2: Under Section 12(7)(i), where the service is provided to a registered person, place of supply is the location of such registered person. Step 3: The recipient is registered in Bengaluru. Step 4: Therefore, place of supply is Bengaluru, not the venue in Pune.

Where it goes wrong. Selecting Pune because the event is held there, applying the rule for unregistered recipients.

Authority. Section 12(7)(i) 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.

Mr. Vivek, an unregistered person in Delhi, purchases a ticket online for admission to an amusement park in Goa. Determine the place of supply.

1. Delhi
2. Location of the online ticketing platform
3. Location of the amusement park's registered office
4. Goa, where the park is located (correct answer)

Answer: D — Goa, where the park is located

Explanation. Step 1: Admission to an amusement park is covered under Section 12(6). Step 2: Under Section 12(6), place of supply is the place where the park or such other place is located. Step 3: The amusement park is in Goa. Step 4: Therefore, place of supply is Goa, regardless of where the ticket is purchased or the recipient's location.

Where it goes wrong. Selecting Delhi because the buyer is there, or the ticketing platform's location.

Authority. Section 12(6) 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 bank in Mumbai provides loan processing services to an unregistered person whose address is not available in the bank's records. The bank has branches in Mumbai and Delhi. The loan is processed at the Delhi branch. Determine the place of supply.

1. Location of the bank branch that provides the service, i.e., Delhi (correct answer)
2. Mumbai, as the bank's head office is there
3. Location of the recipient's bank account
4. Location of the loan applicant's residence

Answer: A — Location of the bank branch that provides the service, i.e., Delhi

Explanation. Step 1: Banking services are covered under Section 12(12). Step 2: Place of supply is the location of the recipient on the records of the supplier. Step 3: If the recipient's location is not on records, place of supply is the location of the supplier. Step 4: The supplier is the bank branch that provides the service. Here, the loan is processed at the Delhi branch, which is the supplier's location for this service. Therefore, place of supply is Delhi.

Where it goes wrong. Selecting Mumbai because it is the bank's head office, or the recipient's residence if assumed.

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

Question 14 · 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 training institute in Bengaluru provides online training to an unregistered person in Chennai. The training is delivered from the institute's studio in Bengaluru. Determine the place of supply.

1. Chennai
2. Bengaluru, where the training is actually performed (correct answer)
3. Location of the internet service provider
4. Location of the recipient's registered office

Answer: B — Bengaluru, where the training is actually performed

Explanation. Step 1: Training services are covered under Section 12(5). Step 2: Under Section 12(5)(b), where training is provided to an unregistered person, place of supply is the location where the services are actually performed. Step 3: The training is performed at the institute's studio in Bengaluru. Step 4: Therefore, place of supply is Bengaluru, even though the recipient is in Chennai.

Where it goes wrong. Selecting Chennai because the recipient is located there, applying the general rule instead of the specific rule.

Authority. Section 12(5)(b) 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.

An event management company organizes a roadshow across three States: Maharashtra, Gujarat, and Rajasthan, for an unregistered client. The consolidated amount is ₹30,00,000. The contract does not specify state-wise value. Determine how the place of supply and value are determined.

1. Only Maharashtra, as the company is based there
2. Only the State where the event concludes
3. Each State in proportion to the value determined using generally accepted accounting principles (correct answer)
4. Equally in all three States

Answer: C — Each State in proportion to the value determined using generally accepted accounting principles

Explanation. Step 1: Organization of an event held in more than one State for an unregistered recipient is covered by the Explanation to Section 12(7). Step 2: The place of supply is deemed to be in each State where the event is held. Step 3: The value is apportioned in proportion to the value determined per the contract; if absent, Rule 5 of IGST Rules applies, using generally accepted accounting principles. Step 4: Therefore, place of supply is each of the three States, with value apportioned based on GAAP.

Where it goes wrong. Selecting a single State or equal apportionment without applying the prescribed rule.

Authority. Explanation to Section 12(7) of the IGST Act, 2017; Rule 5 of the IGST Rules, 2017

Question 16 · 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 airline issues a seasonal ticket booklet with 10 vouchers to an unregistered passenger. The passenger can use the vouchers for travel between any two locations in India. At the time of issue, the embarkation point is not known. Determine the place of supply for the service of issuing the right to passage.

1. Location of the airline's head office
2. Location where the booklet is purchased
3. Location of the first travel undertaken
4. As per the general rule under Section 12(2) (correct answer)

Answer: D — As per the general rule under Section 12(2)

Explanation. Step 1: Passenger transportation services are covered under Section 12(9). Step 2: The proviso states that where the right to passage is given for future use and the point of embarkation is not known at the time of issue, the place of supply is determined under Section 12(2). Step 3: Section 12(2) is the general rule: for unregistered recipient, location of recipient if address available, else location of supplier. Step 4: Therefore, place of supply is determined as per the general rule, not the embarkation rule.

Where it goes wrong. Applying the embarkation point rule even though it is unknown, or selecting the location of purchase.

Authority. Proviso to Section 12(9)(b) 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 courier company in Delhi provides goods transportation services by mail to an unregistered person in Mumbai. The goods are handed over to the courier company at its Delhi office. Determine the place of supply.

1. Mumbai
2. Location of the recipient's address
3. Delhi, where the goods are handed over (correct answer)
4. Location of the courier's sorting hub

Answer: C — Delhi, where the goods are handed over

Explanation. Step 1: Goods transportation by mail or courier to an unregistered person is covered under Section 12(8)(b). Step 2: Place of supply is the location where the goods are handed over for transportation. Step 3: The goods are handed over at the courier company's Delhi office. Step 4: Therefore, place of supply is Delhi, not the destination in Mumbai.

Where it goes wrong. Selecting Mumbai because that is the destination, applying the wrong proxy.

Authority. Section 12(8)(b) of the IGST Act, 2017

Question 18 · 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 stock broking company in Mumbai provides services to a registered person in Delhi. The registered person's address is on the broker's records. Determine the place of supply.

1. Mumbai
2. Location of the stock exchange
3. Location of the broker's registered office
4. Delhi, location of the recipient on records (correct answer)

Answer: D — Delhi, location of the recipient on records

Explanation. Step 1: Stock broking services are covered under Section 12(12). Step 2: Place of supply is the location of the recipient on the records of the supplier. Step 3: The registered person is in Delhi and address is on records. Step 4: Therefore, place of supply is Delhi, not the broker's location in Mumbai.

Where it goes wrong. Selecting Mumbai because the broker is located there, applying the supplier's location instead of the recipient's.

Authority. Section 12(12) 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 company in Gurugram provides sponsorship services for a sporting event in Kerala to a registered recipient in Tamil Nadu. Determine the place of supply.

1. Gurugram
2. Kerala
3. Tamil Nadu, location of the registered recipient (correct answer)
4. Location of the event organizer

Answer: C — Tamil Nadu, location of the registered recipient

Explanation. Step 1: Assigning of sponsorship to an event is covered under Section 12(7). Step 2: Under Section 12(7)(i), where the service is provided to a registered person, place of supply is the location of such registered person. Step 3: The recipient is registered in Tamil Nadu. Step 4: Therefore, place of supply is Tamil Nadu, not the event venue in Kerala.

Where it goes wrong. Selecting Kerala because the event is held there, applying the rule for unregistered recipients.

Authority. Section 12(7)(i) of the IGST Act, 2017

Question 20 · 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. Neha, an unregistered person in Pune, buys a ticket online for a sporting event in Bengaluru. The ticket is purchased from a ticketing platform in Delhi. Determine the place of supply of the admission service.

1. Pune
2. Delhi
3. Location of the sporting event's organizer
4. Bengaluru, where the event is held (correct answer)

Answer: D — Bengaluru, where the event is held

Explanation. Step 1: Admission to a sporting event is covered under Section 12(6). Step 2: Under Section 12(6), place of supply is the place where the event is actually held. Step 3: The sporting event is held in Bengaluru. Step 4: Therefore, place of supply is Bengaluru, regardless of where the ticket is purchased or the recipient's location.

Where it goes wrong. Selecting Pune because the buyer is there, or Delhi because the ticketing platform is there.

Authority. Section 12(6) of the IGST Act, 2017