What is Place of Supply Under GST?
Place of supply determines which state gets the GST revenue — and whether the transaction is intra-state (CGST + SGST) or inter-state (IGST). Getting the place of supply wrong means charging the wrong type of GST, which can result in notices, penalties and refund complications.
💡 Simple Rule
Supplier and recipient in same state = CGST + SGST. Supplier and recipient in different states = IGST. Always check place of supply first before raising an invoice.
Place of Supply for Goods
| Situation | Place of Supply | Tax Type |
|---|---|---|
| Goods moved from supplier to recipient | Location where movement ends (recipient's state) | CGST+SGST or IGST accordingly |
| Goods not moved (installed at site) | Location of installation | Based on installation state |
| Goods on a vessel/aircraft | Location where goods are taken on board | Based on boarding state |
| Import of goods | Location of importer | IGST |
Place of Supply for Services — General Rule
For services, the general rule under Section 12 (domestic) and Section 13 (cross-border) is:
- B2B (both registered): Place of supply = Location of the recipient (their registered address)
- B2C (recipient unregistered): Place of supply = Location of the supplier
Special Rules for Specific Services
| Service Type | Place of Supply |
|---|---|
| Immovable property services (construction, architects, interior designers) | Location of the property |
| Restaurant and catering services | Location where service is performed |
| Admission to events, exhibitions, conferences | Location where event is held |
| Transportation of goods | Location where goods are handed over (B2C) / Recipient's location (B2B) |
| Passenger transportation | Place of embarkation |
| Telecom and internet services | Location of service recipient |
| Banking and financial services | Location of recipient (if known) else supplier's location |
| Insurance services | Location of recipient (registered) / Location of recipient (unregistered) |
Place of Supply for Exports
For exports of goods or services, the place of supply is outside India. These are zero-rated supplies — GST is either not charged (LUT/Bond route) or charged and then refunded (IGST route).
Common Place of Supply Mistakes
- Charging CGST+SGST on inter-state supply — most common error. If buyer is in a different state, charge IGST regardless of where goods originate.
- Wrong state code on invoice — the GSTIN on invoice determines the state for tax allocation. Always verify buyer's GSTIN state code (first 2 digits).
- Property services charged based on supplier's state — for construction, architects, interior design, always charge based on property location regardless of where supplier or buyer is registered.
- B2C services charged based on recipient state — for B2C (unregistered buyer), use supplier's location as place of supply, not buyer's location.
⚠️ GSTIN State Code
The first two digits of every GSTIN are the state code. Maharashtra = 27, Delhi = 07, Karnataka = 29, Tamil Nadu = 33. Always verify the buyer's GSTIN state code before deciding CGST+SGST or IGST.
✅ Verify Your Buyer's GSTIN
Use our free GSTIN Verification tool to instantly validate any GST number and check the state.
GSTIN Verification →Frequently Asked Questions
I am in Mumbai and my client is in Delhi — which tax do I charge?
IGST — as supplier (Maharashtra) and recipient (Delhi) are in different states, it is an inter-state supply regardless of whether goods are physically moved or the service is provided remotely.
My client has multiple offices in different states — which address to use?
Use the address of the specific office that ordered or received the goods/services. In B2B transactions, this is typically the office whose GSTIN is mentioned on the purchase order.
I provided interior design services for a property in Goa but I am registered in Pune — which tax?
For immovable property services, place of supply is the location of the property — Goa. If you are in Maharashtra (Pune) and the property is in Goa, it is an inter-state supply. Charge IGST.
What happens if I charge CGST+SGST instead of IGST by mistake?
You must issue a credit note for the wrongly charged taxes and a fresh invoice with correct IGST. The tax paid to the wrong head can be refunded, but this requires filing a refund claim and takes time. Avoid this error by always checking place of supply first.