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Glossary · GST & Billing

What is Place of Supply?

Place of supply meaning under GST — how it decides whether CGST+SGST or IGST applies — with the key rules under the IGST Act.

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Place of Supply — meaning

Place of supply is the GST rule that determines the location treated as the destination of a supply, which decides whether CGST+SGST (intra-state) or IGST (inter-state) is charged.

What is place of supply?

Place of supply is a set of rules under Chapter V of the Integrated Goods and Services Tax (IGST) Act, 2017 that determine where a supply of goods or services is deemed to take place for GST purposes. This determination decides whether a transaction is intra-state (CGST+SGST/UTGST) or inter-state (IGST), and which state ultimately receives the state component of the tax revenue.

How place of supply works for goods

  • For most goods supplies involving movement, the place of supply is generally the location where the goods are delivered to the recipient.
  • For supplies not involving movement, it is generally the location of the goods at the time of delivery to the recipient.
  • Special rules apply for supplies involving installation/assembly, goods supplied on board a conveyance, and imports/exports, as set out in the IGST Act.

How place of supply works for services

  • The default rule for a registered recipient is the recipient's location; for an unregistered recipient, it is generally the recipient's address on record, or the supplier's location if no address is available.
  • Specific rules override the default for categories such as services related to immovable property, restaurant and catering services, and transportation of goods/passengers, as detailed in the IGST Act.

Common mistakes

  • Determining place of supply from the billing address when the law requires the delivery or recipient location instead.
  • Applying the default service rule when a specific override rule (e.g., for immovable property) actually applies.
  • Not reassessing place of supply when the shipping address differs from the registered business address.

Sources

Last updated 2026-10-12.

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Related terms

IGST, CGST & SGSTCGST and SGST are the central and state components of GST charged on intra-state (within one state) supplies, while IGST is charged on inter-state (between two states) supplies and imports.Tax InvoiceA GST tax invoice is the primary document a registered supplier issues for a taxable supply of goods or services, containing the prescribed details needed for GST compliance and the recipient's input tax credit.GSTINGSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric number assigned to every entity registered under GST.

Place of Supply — FAQs

Why does place of supply matter under GST?+

It decides whether a transaction is treated as intra-state (CGST+SGST/UTGST) or inter-state (IGST), and which state's government receives the state share of the tax.

What is the place of supply for goods that are delivered to the buyer?+

Generally, the location where the goods are delivered to the recipient, as per the rules in Chapter V of the IGST Act, 2017, though special rules apply to certain categories like installation or on-board supplies.

What is the default place of supply for services to a registered person?+

Generally the location of the registered recipient, unless a specific override rule in the IGST Act applies to that category of service.

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