Tax Laws and Practice · Time, Value and Place of Supply

Place of Supply of Services under the IGST Act

Updated 11 October 2026 · Fact-checked

Place of supply of services decides which State, or whether India or abroad, gets the GST. First check where the supplier and recipient are located. If both are in India, apply Section 12 of the IGST Act. If either is outside India, apply Section 13. Use the general rule unless a special rule fits.

Understand Place of Supply of Services

GST is a destination-based tax. The tax should reach the State where the service is consumed. But a service has no physical location like goods do. So the IGST Act gives rules to fix a place of supply for every service.

The place of supply decides two things. First, whether the supply is intra-State (CGST plus SGST) or inter-State (IGST). Second, whether the service is treated as supplied outside India, which matters for exports. If the place of supply is in the same State as the supplier's location, the supply is intra-State. If it is in a different State, it is inter-State.

The Act has two sections for services. Section 12 applies when the location of the supplier and the location of the recipient are both in India. Section 13 applies when the location of either one is outside India. Your first step is always to decide which of the two applies.

Each section has a general rule and a set of special rules. The general rule applies only when no special rule fits. Special rules cover services linked to immovable property, restaurants and catering, training, events, transportation, telecommunication, banking and insurance, among others.

A warning on numbering. Sections 12 and 13 of the CGST Act, 2017 are about time of supply of goods and services. They are a different pair from Sections 12 and 13 of the IGST Act. Always say which Act you mean in your answer.

Key rules to remember

Which section applies: Supplier and recipient both located in India → IGST Act Section 12. Supplier or recipient located outside India → IGST Act Section 13; Decide this first. Quote the correct Act and section in your answer.
General rule: Section 12 (registered recipient): Place of supply = location of the recipient; Applies where the service is supplied to a registered person and no special rule fits.
General rule: Section 12 (unregistered recipient): Place of supply = location of recipient where address is on record; otherwise location of supplier; The supplier's location is the fallback only when no recipient address is on record.
General rule: Section 13: Place of supply = location of the recipient; if that is not available in the ordinary course of business, location of the supplier; Applies when the supplier or the recipient is outside India and no exception fits.
Immovable property services: Place of supply = where the immovable property is located or intended to be located; Covers services such as architects, interior designers, estate agents and hotel or lodging accommodation. Boats and vessels are treated the same way.
Restaurant, catering, personal grooming, fitness, beauty and health services: Place of supply = where the services are actually performed; Section 12 special rule. It applies whether or not the recipient is registered.
Training and performance appraisal (Section 12): Registered recipient → location of recipient. Unregistered recipient → where services are actually performed; Do not mix this with the restaurant rule, which has no registered/unregistered split.
Admission to events: Place of supply = where the event is actually held; Covers cultural, artistic, sporting, scientific, educational and entertainment events, and amusement parks.
Transportation of goods (Section 12): Registered recipient → location of recipient. Unregistered recipient → place where the goods are handed over for transportation; Mail and courier services are treated differently. Check the Act for them.
Passenger transportation (Section 12): Registered recipient → location of recipient. Unregistered recipient → place where the passenger embarks on the conveyance; Services on board a conveyance are supplied at the first scheduled point of departure of that conveyance.
Telecommunication services (Section 12): Fixed line, leased circuit, cable or dish antenna → location of installation. Post-paid mobile → billing address. Pre-paid → where recharge is made or point of sale; Learn the three cases separately.
Banking, financial and insurance services (Section 12): Banking and financial services → location of recipient on record, else location of supplier. Insurance → registered recipient: location of recipient; otherwise location of recipient on record; Always check whether the recipient is registered.

How to solve Place of Supply of Services questions

Use the same sequence for any question on place of supply of services. It keeps you from jumping to the wrong section.

1Note the location of the supplier and the location of the recipient from the facts. Look for State names and for any foreign location.
2Decide the section. Both in India means IGST Act Section 12. Either one outside India means IGST Act Section 13.
3Identify the type of service. Ask if it is linked to immovable property, a restaurant or health service, training, an event, transport, telecom, banking or insurance.
4Check whether the recipient is registered. Many special rules in Section 12 split on this.
5Apply the special rule if one fits. If none fits, apply the general rule of that section.
6State the place of supply clearly, as a State or as outside India.
7Compare it with the supplier's location. A different State means inter-State supply and IGST. The same State means intra-State supply and CGST plus SGST. Then give a one-line conclusion.

Quickest way: Two-question shortcut

When to use it: Use it for short-answer or MCQ-style parts inside a written paper, when you must decide the place of supply in under a minute.

Question 1: is the service tied to a place, such as property, a restaurant, a salon, an event or a training venue? If yes, the place of supply is usually where the property is or where the service is performed.
Question 2: otherwise, is it a recipient-based service such as consultancy, legal or accounting work? If yes, the place of supply is the recipient's location.
Before you finalise, check the recipient's registration status for transport, training, insurance and similar services.
Write the section number, the rule and the conclusion in one line each.

Common mistakes in Place of Supply of Services

Quoting CGST Sections 12 and 13 for place of supply.
The numbers match the IGST Act sections, and students search for them together.
Fix: CGST Sections 12 and 13 deal with time of supply. Place of supply of services is in IGST Act Sections 12 and 13. Name the Act every time.
Using the supplier's location as the general rule.
Students think of where the work is done, not where the service is consumed.
Fix: The general rule is the recipient's location. The supplier's location is only a fallback.
Ignoring whether the recipient is registered.
Students remember the rule but not the split.
Fix: For transport, training, insurance and the general rule, always write the registered and unregistered cases separately.
Applying Section 12 to a foreign supplier or recipient.
Students read only the service and skip the locations.
Fix: Fix both locations first. If either is outside India, use Section 13.
Taking the recipient's office as the place of supply for immovable property services.
Students apply the general rule out of habit.
Fix: A property-linked service is supplied where the property is, even if the client is in another State.
Stopping at the place of supply without stating the consequence.
Students forget the point of the exercise.
Fix: End with whether the supply is inter-State or intra-State, and which tax applies.

Worked examples

Example 1

Sharma & Associates, architects registered in Mumbai, Maharashtra, design a commercial building at Panaji, Goa, for Coastal Realty Ltd, registered in Pune, Maharashtra. Determine the place of supply and the tax applicable.

Show the solution

Both the supplier and the recipient are located in India, so IGST Act Section 12 applies.
The service is an architect's service linked to immovable property, which is a special rule.
The special rule says the place of supply is where the immovable property is located or intended to be located. The building is to be built at Panaji.
So the place of supply is Goa, not Maharashtra, even though the recipient is in Pune.
The supplier is located in Maharashtra and the place of supply is in Goa. These are different States, so the supply is inter-State.

Answer: The place of supply is Goa. The supply is inter-State, so IGST is payable.

Example 2

Kaveri Consultants, registered in Chennai, Tamil Nadu, provide management consultancy to Orion Pte Ltd, a company located in Singapore, with no special rule applying to the service. Determine the place of supply.

Show the solution

The recipient is located outside India, so IGST Act Section 13 applies.
The service is consultancy and none of the special rules fit it. So the general rule applies.
The general rule is that the place of supply is the location of the recipient. Orion Pte Ltd is in Singapore.
The place of supply is therefore outside India. Whether the supply qualifies as an export of services depends on the other conditions in the definition of export of services. Check those before you claim zero rating.

Answer: The place of supply is outside India (Singapore), by the general rule of IGST Act Section 13. Check the export conditions to confirm zero rating.

Exam tips

Begin every answer by naming the Act and section: IGST Act Section 12 or Section 13. It shows the examiner you know which provision applies.
Write the provision, then the facts, then a clear conclusion. For place of supply, the conclusion is the State, or outside India, and the type of tax.
Keep a one-page list of special rules in your revision notes. Write the service on the left and the place on the right, and mark the ones with a registered/unregistered split.
Practise the pair of facts in questions: supplier State, recipient State, property or event State. Mark all three before you answer.
For Section 13 exceptions, such as transport and intermediary services, learn the current text from your study material, since some provisions have been amended.

Practice questions from Time, Value and Place of Supply

Place of Supply of Services in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Place of Supply of Services: frequently asked questions

What is the difference between Section 12 and Section 13 of the IGST Act?

Section 12 applies when the location of the supplier and the location of the recipient are both in India. Section 13 applies when the location of either is outside India. Each has a general rule and special rules for particular services.

Are Sections 12 and 13 of the CGST Act the same as those of the IGST Act?

No. CGST Sections 12 and 13 fix the time of supply of goods and services. IGST Sections 12 and 13 fix the place of supply of services. Name the Act in your answer.

What is the place of supply for a restaurant service?

Under Section 12, it is the place where the restaurant service is actually performed. Registration of the recipient does not change this. So a Delhi resident who dines at a restaurant in Jaipur is supplied in Rajasthan.

Why does place of supply matter?

It decides whether the supply is inter-State or intra-State, and so whether IGST or CGST plus SGST applies. It also decides whether a service is treated as supplied outside India, which matters for exports.

What is the general rule for place of supply of services?

The place of supply is the location of the recipient. Under Section 12, if the recipient is unregistered and no address is on record, the location of the supplier is used. Under Section 13, the supplier's location is the fallback if the recipient's location is not available in the ordinary course of business.