Place of Supply Under explained: this guide covers what Place of Supply Under 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 Place of Supply (POS) is the keystone of India's GST architecture. It determines whether a transaction is intra-state (CGST + SGST/UTGST) or inter-state (IGST). The IGST Act 2017 contains the POS rules under Sections 10-13.
Why POS Matters
- CGST + SGST: If supplier location = POS (same state) — tax shared between Centre and State
- IGST: If supplier location ≠ POS (different states) — tax collected by Centre; distributed to destination state
- Wrong POS means wrong tax payment — ITC cannot be set off, and demand arises
Place of Supply for Goods (Section 10-11)
| Scenario | POS Rule | POS |
|---|---|---|
| Goods with movement (domestic) | Section 10(1)(a) | Where movement terminates (delivery point) |
| Goods without movement (on-site installation) | Section 10(1)(c) | Location where goods are installed/assembled |
| Goods on board vessel/aircraft | Section 10(1)(e) | First departure point |
| Imports | Section 11 | Location of importer in India |
| Exports | Section 11 | Outside India — zero-rated supply |
Place of Supply for Services (Section 12) — B2B (Registered Recipient)
| Service Type | Section | POS |
|---|---|---|
| General (default) | 12(2)(a) | Location of recipient (GSTIN) |
| Immovable property related (architecture, construction, valuation) | 12(3) | Location of immovable property |
| Restaurant and catering | 12(4) | Where service actually performed |
| Events/performances (registered recipient) | 12(7)(a) | Location where event held |
| Transport of goods (GTA, registered recipient) | 12(8)(a) | Location of recipient |
| Financial services (banking/insurance) | 12(12) | Location of recipient (or provider if recipient location not known) |
| Telecom services | 12(11) | Home address of subscriber |
Cross-Border Services (Section 13) — POS for International Transactions
| Service | POS |
|---|---|
| General (default) | Location of recipient |
| Performance-based services | Where service is actually performed |
| OIDAR (digital services — streaming, cloud, gaming) | Location of recipient |
| Intermediary services (agents/brokers) | Location of supplier (intermediary) |
OIDAR Services — Digital Economy GST
OIDAR services provided by overseas suppliers to non-business recipients in India:
- POS = India (where recipient is located)
- Overseas supplier must register in India as an Non-Resident Taxable Person (NRTP) or through a representative
- Netflix, Amazon Prime, Spotify, LinkedIn Premium etc. registered and charging 18% IGST on Indian subscribers
- GST collected from Indian consumers remitted to government
Common POS Mistakes
- Charging CGST+SGST on B2B supply to another state — should be IGST
- Not applying immovable property rule (Section 12(3)) for construction/real estate services
- Treating all service exports as zero-rated without verifying POS falls outside India
- E-commerce operators not applying buyer's state IGST on intrastate vs interstate sales
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