In our previous blog, we have discussed the ‘Time of Supply under GST’, wherein we explained that for the purpose of discharging GST liability, it is imperative to understand and know the date on which the tax liability arises.

The same way, to determine the right tax to be charged on the invoice, understanding the concept of “Place of Supply” is very crucial. Knowing the place of supply helps to ascertain whether IGST or CGST + SGST/UTGST is to be levied on the supply of goods and services.

GST is basically a consumption-based tax as the component of SGST /UTGST is payable to the state in which goods or services are actually consumed. Location of the supplier and the location of the recipient of goods or services are the two most important concepts as it acts as a base for determining whether the supply of goods or services is to be considered as intra-state supply or inter-state supply, to levy the tax accordingly. The levy of GST (IGST in case of inter-state transactions and CGST plus SGST / UTGST in case of intra-state transactions) is determined accordingly.

The provisions for determining the Place of supply of goods or services have been provided in the IGST Act, 2017.

As goods are tangible, the determination of their place of supply, based on the consumption principle, is not difficult, hence, the place of delivery of goods becomes the place of supply. But, it is not easy to determine the exact place where services are acquired or consumed, as services are intangible in nature.

Place of supply of goods are clearly established under Sections 10 and 11; and place of supply of services under Sections 12 and 13 of the IGST Act, 2017, which are duly explained in the table herewith:

S.NO.	SECTION	DESCRIPTION
1.	Section 10 Place of supply of goods other than supply of goods imported into, or exported from India	As per this section, when the supply involves movement of goods, the place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. Whereas, if the supply does not involve movement of goods, the place of supply shall be the location of such goods at the time of the delivery to the recipient.   Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person.
2.	Section 11 Place of supply of goods imported into, or exported from India	As per this section, the place of supply of goods imported into India shall be the location of the importer and the place of supply of goods exported from India shall be the location outside India.
3.	Section 12 Place of supply of services where location of supplier and recipient is in India	As per this section, if supply of services is made to a registered person, the location of such person will be considered as the place of supply. Whereas, if such supply is made to any person other than a registered person, the location of the recipient where the address on record exists is the location of the supplier of service.   [Note: This main provision applies when none of the other later provisions of Section 12, i.e., Section 12 (3) to 12(14) of the IGST Act, 2017 are applicable]
4.	Section 13 Place of supply of services where location of supplier or location of recipient is outside India	As per this section, the place of supply of services shall be the location of the recipient of service. But, if the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services. [Note: This main provision applies when none of the other later provisions of Section 12, i.e., Section 13 (3) to 13(13) of the IGST Act, 2017 are applicable]