CBIC clarifies Place of Supply as Delivery Address for Unregistered buyers with different Billing Address in e-com Transactions

The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 209/3/2024-GST on June 26, 2024, clarifying clause (ca) of Section 10(1) of the Integrated Goods and Service Tax (IGST) Act, 2017. Effective from October 1, 2023, this clause determines the place of supply for goods delivered to unregistered persons in e-commerce transactions. It mandates that the place of supply is either the location mentioned in the invoice or the supplier's location if the address is absent. Notably, the circular emphasizes that recording the recipient state's name suffices as recording the address. If billing and delivery addresses differ, the delivery address on the invoice dictates the place of supply. For instance, if an unregistered person in State X orders goods to be delivered to State Y, the place of supply will be State Y. This clarification aims to streamline GST compliance in e-commerce transactions involving unregistered persons.