Place of Supply Under 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 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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Get Free ConsultationKey Facts About Place of Supply Under
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
Why is place of supply important in GST?
Place of supply (POS) determines which tax applies: CGST+SGST (if POS and supplier location are in same state — intra-state) or IGST (if POS and supplier are in different states — inter-state). Wrong classification leads to wrong tax credit and demand.
What is the place of supply for goods with movement?
Section 10(1)(a): The place where goods movement terminates for delivery to recipient. For intra-state delivery: destination state. For inter-state: state where goods are delivered. Movement ends at the place of delivery.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
Place of Supply Under: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.
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Why This Matters
Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in gst are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.
Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines.