Section 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The most granular rule in section 12, because it tracks how the service is actually delivered rather than who receives it.
Section 12(11) applies to telecommunication services including data transfer, broadcasting, cable and direct to home television services, to any person — with no registration split — and gives four tests. (a) Fixed line, leased circuits, internet leased circuit, cable or dish antenna: where the line, circuit, cable connection or dish antenna is installed for receipt of services. (b) Mobile and internet on post-paid: the location of the billing address of the recipient on the record of the supplier. (c) Pre-payment through a voucher or otherwise: (i) through a selling agent, re-seller or distributor of SIM or recharge voucher — the address of that agent, re-seller or distributor as per the supplier's record at the time of supply; (ii) by any person to the final subscriber — the location where the prepayment is received or the vouchers are sold. (d) In other cases: the address of the recipient as per the supplier's records, and where unavailable, the supplier's location.
The four models, and why they differ
| Clause | Delivery model | Test |
|---|---|---|
| (a) | Fixed infrastructure — line, leased circuit, cable, dish | Where installed |
| (b) | Post-paid mobile and internet | Billing address on record |
| (c)(i) | Pre-paid through an agent, re-seller or distributor | Agent's address on the supplier's record at the time of supply |
| (c)(ii) | Pre-paid direct to the final subscriber | Where the prepayment is received or the voucher is sold |
| (d) | Everything else | Address on the supplier's records; else the supplier's location |
The logic: each test picks the datum the supplier actually holds for that model. A fixed-line operator knows where the line is; a post-paid operator holds a billing address; a pre-paid operator knows where the recharge was sold but not who bought it.
The two provisos
The first proviso: "Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services."
A default to the supplier's own location where no address is held — mirroring the default in s.12(2)(b)(ii) for services generally and in s.10(1)(ca) for goods to unregistered persons.
The second proviso: "Provided further that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services."
This overrides clause (c) for electronic recharges. Where the pre-paid service is availed or recharged through internet banking or other electronic mode of payment, the place of supply is the recipient's location on the supplier's record — not the agent's address and not the point of sale.
Which is the operationally significant limb today, because the great majority of recharges are electronic. A telecom operator's determination therefore turns largely on the subscriber location held on its records, with the physical point-of-sale tests in clause (c) applying to the diminishing share of over-the-counter cash recharges.
The Explanation: leased circuits across States
"Where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed."
The same apportionment architecture as s.12(3) for immovable property and s.12(7) for events:
- value separately collected under the contract;
- value determined in terms of the contract;
- such other basis as may be prescribed.
Two conditions: the circuit is installed in more than one State, and a consolidated amount is charged.
Where it bites: a multi-State enterprise leasing a point-to-point circuit, an MPLS network across offices, or a dark fibre route. The service is treated as supplied in each State the circuit passes through or terminates in, with the value split.
The drafting point, again: state the value attributable to each State in the contract, or the basis for determining it. For a national network contract this is worth doing at the outset, because reconstructing an apportionment for a network already built is difficult and the credit lands in whichever State the apportionment says.
What follows for the customer
Clause (a) determines where the credit lands. A leased circuit installed at an office in Tamil Nadu produces a supply with its place of supply in Tamil Nadu — so the credit accrues to a Tamil Nadu registration, not to the head office that signed the contract.
For a multi-State customer, that means:
- circuits and connections should be contracted registration by registration, matching the installation State;
- a single national contract with a consolidated charge triggers the Explanation, and the apportionment determines where each part of the credit lands;
- where the credit lands in a State with insufficient output liability, it accumulates — and there is no refund route for accumulated credit outside the two cases in s.54(3). Section 54(8) and unjust enrichment →
And post-paid mobile follows the billing address, so corporate mobile connections should carry the billing address of the registration intended to take the credit.
Broadcasting, cable and DTH
The sub-section covers them expressly — "telecommunication services including data transfer, broadcasting, cable and direct to home television services".
For DTH and cable to consumers, the dish antenna or cable connection installation governs under clause (a), or the pre-paid rules in clause (c) where supplied on a pre-payment basis through vouchers.
And the second proviso applies to DTH recharges too — clause (c) expressly covers "mobile connection for telecommunication, internet service and direct to home television services... provided on pre-payment basis", so an electronic DTH recharge is determined by the subscriber location on the supplier's record.
Key takeaways
- Section 12(11) has no registration split — the same tests apply to business and consumer customers.
- Fixed infrastructure follows where it is installed; post-paid follows the billing address on record.
- Pre-paid follows the agent's address or the point of sale — but the second proviso overrides both for electronic recharges.
- The first proviso defaults to the supplier's location where no address is held.
- A leased circuit across States with a consolidated charge is apportioned by the contract.
- For a multi-State customer, the installation State decides where the credit lands.
Read next
- Section 12(12) and 12(13): Banking, Financial and Insurance Services
- Section 12(3): Immovable Property and the Proportionate Rule
- Section 12(2): The Default Rule for Services Within India
- Section 12(6) and 12(7): Admission and Event Organisation
Disclaimer: Positions stated as on 5 September 2026, based on the IGST Act as amended to 31 March 2026 (ICAI Bare Law, 12th edition).