<p style="text-align:justify"><span style="font-size:14px">Hanuman Traders, a dealer in furniture, located in Maharashtra, receives an order from Ram Traders, also located in Maharashtra. The order is for the supply of 50 Tables, with an instruction to ship the Tables to Prime Hardwares, located in Tamil Nadu. Prime Hardwares is a customer of Ram Traders.</span></p>

<p style="text-align:justify"><span style="font-size:14px">There are two parts to this transaction:</span></p>

<p style="text-align:justify"><span style="font-size:14px"><strong>First part of the transaction &ndash; between Hanuman Traders and Ram Traders</strong>: Hanuman Traders is the supplier of Tables, and Ram Traders is the buyer. Accordingly, Hanuman Traders bills the transaction to Ram Traders, and as per the instruction, ships the goods to Prime Hardwares in Tamil Nadu.</span></p>

<p style="text-align:justify"><span style="font-size:14px"><strong>The<strong> </strong>second</strong><strong> </strong><strong>part</strong><strong> </strong><strong>of</strong><strong> </strong><strong>the transaction &ndash; between Ram Traders and Prime Hardwares: </strong>Ram Traders is the supplier, and Prime Hardwares is the buyer. Ram Traders bills the transaction to Prime Hardwares, and endorses the lorry receipt (goods shipped in a lorry by Hanuman Traders) in favour of Prime Hardwares. This lorry receipt (LR) will enable Prime Hardwares to take the delivery of the goods.</span></p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify"><span style="font-size:14px">Over here, <span style="color:#282424">on the instruction from Ram Traders, Hanuman Traders ships the aluminum ladders to Prime Hardwares located in Tamil Nadu.</span></span></p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify"><span style="font-size:14px"><span style="color:#282424">Here, Ram Traders is deemed as the third person. Therefore, the <strong>place of supply </strong>will be the principal place of business of the third person, i.e., Maharashtra. Accordingly, Hanuman Traders charges CGST and SGST on billing to Ram Traders. The second part of the transaction between Ram Traders and Prime Hardwares will also be interstate, and IGST will be charged.</span></span></p>