Place of Supply Rules 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.
Place of supply determines whether a transaction is intra-state (CGST+SGST) or inter-state (IGST). Getting it right is crucial for charging the correct GST.
Place of supply for goods
- Where movement is involved — the location where movement terminates for delivery
- Where there is no movement — the location of the goods at the time of delivery
- For imports — the location of the importer
Place of supply for services
- General rule (B2B) — the location of the registered recipient
- General rule (B2C) — the location of the supplier
- Special rules for immovable property, transport, events, telecom, etc.
Why it matters
If you wrongly charge CGST+SGST instead of IGST (or vice versa), you may need to pay the correct tax and claim a refund of the wrong one, so determine the place of supply carefully.
Frequently Asked Questions
What is place of supply in GST?
The location that decides whether a supply is intra-state (CGST+SGST) or inter-state (IGST).
How is place of supply decided for goods?
Usually where the movement of goods terminates for delivery to the recipient.
How is place of supply decided for services?
For B2B, the recipient's location; for B2C, the supplier's location, with special rules for certain services.
Why does place of supply matter?
It decides whether you charge IGST or CGST+SGST, and getting it wrong causes tax and refund issues.
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