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Microlesson · 5-min read

Place of Supply – Transportation of Goods [Section 12(8)]

## Place of Supply – Transportation of Goods [Section 12(8) of IGST Act]

For goods transportation services (including by mail or courier), the rule depends on whether the recipient is registered.

### Rule

RecipientPlace of Supply
Registered personLocation of such registered person
Unregistered personLocation where the goods are handed over for transportation

### Note

This covers transportation by road, rail, air, vessel and by mail/courier. Specific rules apply to passenger transportation (12(9)) and on-board conveyance (12(10)).

Worked example

### Example 1

Example 1: A registered manufacturer in Maharashtra hires a transporter to move goods from Delhi to Chennai.

  • Recipient registered in Maharashtra
  • Place of Supply = Maharashtra

### Example 2

Example 2: An unregistered individual in Pune sends a parcel from Delhi to Bangalore.

  • Goods handed over at: Delhi
  • Place of Supply = Delhi

### Example 3

Example 3: Mr. R (unregistered, Kolkata) ships goods via courier from Howrah to Mumbai.

  • Goods handed over at: Howrah (West Bengal)
  • Place of Supply = West Bengal

⚠️ Common exam mistakes

  • Always applying 'location of recipient' irrespective of registration – wrong for unregistered persons.
  • Treating courier/mail differently – they are within 12(8).
  • Confusing transportation of goods with passenger transportation – different sections apply.
Bare-Act text Section 12(8) · IGST Act, 2017 · click to expand
Section 12(8) of IGST Act, 2017 – The place of supply of services by way of transportation of goods, including by mail or courier to, (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
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