Indirect Tax Laws and Practice · Place of Supply

Place of Supply for Goods Assembled or Installed at Site

Updated 11 October 2026 · Fact-checked

Under Section 10(1)(d) of the IGST Act, 2017, where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. Identify that the supply includes installation or assembly, find where it is done, and treat that State or Union territory as the place of supply. Then compare it with the supplier's location.

Understand Goods Assembled or Installed at Site

Place of supply decides whether a supply is intra-State or inter-State. If the supplier's location and the place of supply are in the same State, you charge CGST and SGST (or UTGST). If they are in different States, you charge IGST. So the place of supply decides which tax applies and which State gets it.

For most domestic goods, Section 10(1)(a) looks at where the movement of goods ends. That works when the supplier simply delivers goods. It does not work well when the supplier must also put the goods together or fix them at the customer's premises. The goods are not really "received" until they are installed.

Section 10(1)(d) handles this. Where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. A lift supplied from Pune and fitted in a building in Chennai has Chennai as the place of supply, whichever way the lift travelled.

The clause is specific to assembly or installation at site. It applies to goods supplies. Do not use it for a plain delivery of machinery that the buyer installs on their own, and do not confuse it with services rules under Section 12.

There is one more point. Section 10(1)(ca) applies to supplies to unregistered persons and says it operates "notwithstanding" clauses (a) and (c). It does not name clause (d). So for installation supplies, clause (d) is the specific rule to apply first. If a question mixes an unregistered buyer with installation, quote the text of the clauses and state your reasoning.

Key rules to remember

Installation or assembly rule: Place of supply = place of installation or assembly of the goods at site; Section 10(1)(d), IGST Act, 2017. Applies to supplies of goods other than imports and exports.
Intra-State or inter-State test: Location of supplier and place of supply in same State/UT → intra-State (CGST + SGST/UTGST); in different States/UTs → inter-State (IGST); Compare the supplier's location with the site of installation.
Exclusion for imports and exports: Imports: location of importer. Exports: location outside India.; Section 11 covers these. Section 10 does not apply to them.

How to solve Goods Assembled or Installed at Site questions

Use this method for any question on place of supply of goods installed or assembled at a customer's site.

1Check that the supply is of goods and that it is within India. Imports and exports fall under Section 11, not Section 10.
2Read the facts to see whether the goods are assembled or installed at the customer's site as part of the supply.
3If yes, apply Section 10(1)(d): the place of supply is the place of installation or assembly.
4Note the supplier's location from the facts.
5Compare the supplier's location with the place of installation. Same State means intra-State. Different State means inter-State.
6State the tax: CGST and SGST/UTGST for intra-State, IGST for inter-State.
7If the facts show a plain delivery with no installation by or for the supplier, switch to Section 10(1)(a) or the relevant clause.
8Write the conclusion with the clause number and a one-line reason.

Quickest way: Install-Where-Then-Compare

When to use it: Use this for MCQs and short case questions where you must name the place of supply and the tax in under a minute.

Underline the word installed, assembled, erected or fitted at site.
Mark the State where the work is done. That is the place of supply.
Mark the supplier's State.
Same State: CGST + SGST. Different State: IGST.
Ignore the route of transport and the billing address unless the question tests another clause.

Common mistakes in Goods Assembled or Installed at Site

Using the place where the goods are dispatched from as the place of supply.
Students remember the default movement rule and apply it without checking for installation.
Fix: Look for installation or assembly first. If present, the site is the place of supply under Section 10(1)(d).
Using the place where the movement ends under Section 10(1)(a) even when the goods are installed there.
The site and the delivery point often look the same, so students pick the general rule.
Fix: Name clause (d) because it is the specific rule for installation or assembly. Quote it in the answer.
Taking the buyer's registered office or billing address as the place of supply.
Students mix this with the services rule for registered recipients.
Fix: For goods installed at site, the location of the site decides. The billing address does not.
Applying clause (d) when the buyer installs the goods by themselves.
Students see the word installation in the facts and stop reading.
Fix: Check that the supplier's supply involves the assembly or installation at site. Otherwise use the general rule for the case.
Charging IGST just because goods were transported across States.
Students link inter-State movement with IGST.
Fix: Compare the supplier's location with the place of installation, not the path of the goods.
Applying this clause to imports of machinery that is then installed in India.
Students forget that Section 10 excludes imports and exports.
Fix: Imports follow Section 11: place of supply is the location of the importer.

Worked examples

Example 1

Sundaram Lifts Ltd, registered in Coimbatore (Tamil Nadu), supplies a passenger lift to Anand Realty Pvt Ltd for its building in Pune (Maharashtra). Sundaram Lifts installs the lift at the Pune site. Determine the place of supply and the tax applicable.

Show the solution

The supply is of goods within India, so Section 10 applies.
The lift is installed at site by the supplier, so Section 10(1)(d) applies.
Place of supply is the place of installation: Pune, Maharashtra.
Supplier's location is Tamil Nadu.
Location of supplier (Tamil Nadu) differs from place of supply (Maharashtra), so the supply is inter-State.
IGST is chargeable.

Answer: Place of supply is Maharashtra under Section 10(1)(d) of the IGST Act. The supply is inter-State, so IGST applies.

Example 2

Bharat Modular Furniture Ltd, registered in Jaipur (Rajasthan), sells modular kitchen units to Meera Hotels Ltd and assembles them at Meera's hotel in Jaipur. The goods are made in a factory in Gujarat and moved to Jaipur by road. Determine the place of supply and the nature of supply.

Show the solution

The supply is of goods within India under Section 10.
The units are assembled at site as part of the supply, so Section 10(1)(d) applies.
Place of supply is the place of assembly: Jaipur, Rajasthan.
The movement from Gujarat does not decide the place of supply here.
Supplier's location is Rajasthan, the same as the place of supply.
The supply is intra-State, so CGST and SGST of Rajasthan apply.

Answer: Place of supply is Rajasthan. The supply is intra-State, so CGST and Rajasthan SGST are payable.

Exam tips

In case scenarios, scan the facts for the words installed, assembled, erected or fitted at site. They are the cue for Section 10(1)(d).
Always give the clause number and the plain-words rule, then the tax conclusion. Marks go to the reasoning.
Ignore distractors such as the factory location, route of transport and billing address when the goods are installed at site.
Compare the supplier's location with the site before naming CGST, SGST or IGST.
Write the rule on installation separately from imports and exports. Section 11 handles those.

Practice questions from Place of Supply

Goods Assembled or Installed at Site: frequently asked questions

What is the place of supply when goods are installed at the customer's site?

It is the place of installation or assembly. This is the rule in Section 10(1)(d) of the IGST Act, 2017. The supplier's location and the path of the goods do not change it.

Does Section 10(1)(d) apply to imported machinery?

No. Section 10 covers goods other than those imported or exported. For imports, the place of supply is the location of the importer under Section 11.

How does this clause differ from the movement rule in Section 10(1)(a)?

Clause (a) uses the location of the goods when movement ends for delivery. Clause (d) uses the place where the goods are assembled or installed. It is the specific rule when installation is part of the supply.

How do I decide between CGST/SGST and IGST for an installed goods supply?

Compare the supplier's location with the place of installation. If both are in the same State or Union territory, the supply is intra-State. If they differ, it is inter-State and IGST applies.