If there is one field on your GST invoice that determines whether you charge IGST or CGST+SGST, it is the Place of Supply. Get it wrong, and you have charged the wrong tax type.

The Place of Supply rules are different for goods and services. They change based on whether your buyer is registered or unregistered. This guide explains the rules with practical examples.

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Place of Supply for Goods — the 3 scenarios

Scenario 1: Goods delivered to buyer's premises. Place of Supply is the location where the goods are delivered. If you ship from Maharashtra to Karnataka, the Place of Supply is Karnataka — charge IGST.
Scenario 2: Goods collected by buyer (ex-factory). Place of Supply is the location of the goods at the time of collection.
Scenario 3: Goods delivered to a third party (bill-to-ship-to). If your Delhi client asks you to deliver to their Mumbai branch, Place of Supply is Mumbai (delivery location), not Delhi.
The key principle for goods: Place of Supply follows the physical location of the goods at the time of delivery.

Place of Supply for Services — the general rule and exceptions

General Rule: For B2B services, Place of Supply is the location of the recipient (their registered address).
Exception 1: Services related to immovable property. Place of Supply is where the property is located.
Exception 2: Admission to events. Place of Supply is where the event is held.
Exception 3: Transportation of goods. Place of Supply is the location of the recipient if registered, otherwise where goods are handed over for transport.
Exception 4: Telecom services. Place of Supply is the billing address of the recipient on the record of the supplier.

Place of Supply for exports and imports

Export of goods: Place of Supply is outside India. These are zero-rated supplies — no GST charged if you have LUT.
Export of services: Place of Supply is outside India if the recipient is located outside India and the service is not related to immovable property in India.
Import of goods: Place of Supply is the location of the importer. IGST is charged at the time of import.
Import of services: Place of Supply is the location of the recipient. Reverse charge applies.

Common Place of Supply mistakes and how to avoid them

Mistake 1: Using billing address instead of delivery address for goods. Always confirm where goods are actually being delivered.
Mistake 2: Charging IGST for services to an unregistered recipient in the same state.
Mistake 3: Not updating Place of Supply when delivery location changes mid-order.
Mistake 4: Assuming Place of Supply for e-commerce is always the buyer's address.
Best practice: Add a 'Place of Supply' field to your invoice template and verify it for every transaction.

How Place of Supply affects your GST returns

GSTR-1 reporting: You must report supplies separately for each state/UT based on Place of Supply.
ITC matching: Your buyer's GSTR-2B will auto-populate based on the Place of Supply you report.
E-way bills: Place of Supply determines whether an e-way bill is required and which state's rules apply.
Annual reconciliation: At year-end, ensure your total IGST and CGST+SGST splits match your actual Place of Supply determinations.

Place of Supply for Goods — the 3 scenarios

Scenario 1: Goods delivered to buyer's premises. Place of Supply is the location where the goods are delivered. If you ship from Maharashtra to Karnataka, the Place of Supply is Karnataka — charge IGST.

Scenario 2: Goods collected by buyer (ex-factory). Place of Supply is the location of the goods at the time of collection.

Scenario 3: Goods delivered to a third party (bill-to-ship-to). If your Delhi client asks you to deliver to their Mumbai branch, Place of Supply is Mumbai (delivery location), not Delhi.

The key principle for goods: Place of Supply follows the physical location of the goods at the time of delivery.

Place of Supply for Services — the general rule and exceptions

General Rule: For B2B services, Place of Supply is the location of the recipient (their registered address).

Exception 1: Services related to immovable property. Place of Supply is where the property is located.

Exception 2: Admission to events. Place of Supply is where the event is held.

Exception 3: Transportation of goods. Place of Supply is the location of the recipient if registered, otherwise where goods are handed over for transport.

Exception 4: Telecom services. Place of Supply is the billing address of the recipient on the record of the supplier.

Place of Supply for exports and imports

Export of goods: Place of Supply is outside India. These are zero-rated supplies — no GST charged if you have LUT.

Export of services: Place of Supply is outside India if the recipient is located outside India and the service is not related to immovable property in India.

Import of goods: Place of Supply is the location of the importer. IGST is charged at the time of import.

Import of services: Place of Supply is the location of the recipient. Reverse charge applies.

Common Place of Supply mistakes and how to avoid them

Mistake 1: Using billing address instead of delivery address for goods. Always confirm where goods are actually being delivered.

Mistake 2: Charging IGST for services to an unregistered recipient in the same state.

Mistake 3: Not updating Place of Supply when delivery location changes mid-order.

Mistake 4: Assuming Place of Supply for e-commerce is always the buyer's address.

Best practice: Add a 'Place of Supply' field to your invoice template and verify it for every transaction.

How Place of Supply affects your GST returns

GSTR-1 reporting: You must report supplies separately for each state/UT based on Place of Supply.

ITC matching: Your buyer's GSTR-2B will auto-populate based on the Place of Supply you report.

E-way bills: Place of Supply determines whether an e-way bill is required and which state's rules apply.

Annual reconciliation: At year-end, ensure your total IGST and CGST+SGST splits match your actual Place of Supply determinations.

Place of Supply under GST: the rule that determines your tax type

Stop fighting with invoice templates.

Place of Supply for Goods — the 3 scenarios

Place of Supply for Services — the general rule and exceptions

Place of Supply for exports and imports

Common Place of Supply mistakes and how to avoid them

How Place of Supply affects your GST returns

Keep reading

GST tax invoice rules in India: every mandatory field explained

HSN and SAC codes explained — a practical guide for Indian businesses

Place of Supply under GST: the rule that determines your tax type

Stop fighting with invoice templates.

Place of Supply for Goods — the 3 scenarios

Place of Supply for Services — the general rule and exceptions

Place of Supply for exports and imports

Common Place of Supply mistakes and how to avoid them

How Place of Supply affects your GST returns

Keep reading

GST tax invoice rules in India: every mandatory field explained

HSN and SAC codes explained — a practical guide for Indian businesses