Place of Supply under GST: Meaning & Rules
Definition
Place of supply is the state where a supply is treated as made under GST. If it is in the supplier's state, CGST + SGST apply; if it is in another state, IGST applies.
| Term | Place of supply (GST) |
|---|---|
| In Hindi | आपूर्ति का स्थान (GST) |
| Area | GST & tax |
| Search phrase | place of supply under GST |
| Try it | GST state code list |
आपूर्ति का स्थान (GST) — हिंदी में अर्थ
GST में आपूर्ति का स्थान वह राज्य है जहाँ आपूर्ति मानी जाती है। सप्लायर के राज्य में हो तो CGST + SGST, दूसरे राज्य में हो तो IGST लगता है।
Place of supply of goods — basic rules
Where goods move, the place of supply is where the movement ends — the delivery location. In a bill-to/ship-to sale on the instruction of a third person, it is the principal place of business of that third person. Where goods do not move, it is where they are at the time of delivery. Goods installed or assembled at site: where installed.
On the invoice
A tax invoice must show the place of supply with the state name and two-digit state code. Picking the wrong one charges the wrong tax head; the customer cannot use the credit until it is corrected.
Example
A Gujarat manufacturer delivers to a customer's site in Maharashtra: place of supply Maharashtra (27), so IGST is charged.
Related tools and guides
Frequently asked questions
What is place of supply in GST?
The state where a supply is deemed to be made, which decides whether IGST or CGST + SGST applies.
Is place of supply the same as delivery address?
For goods that move, usually yes — the place where movement ends. Bill-to/ship-to and installed goods have specific rules.
What if the wrong place of supply is charged?
Tax paid under the wrong head has to be paid under the correct head and a refund claimed for the wrong one.
Where do I find state codes?
In the GST state code list — Gujarat is 24, Maharashtra 27, Karnataka 29, Delhi 07.
Related terms
- Bill of supplyA bill of supply is the GST document issued instead of a tax invoice when no tax can be charged — by a composition taxpayer, or by a registered person supplying exempt goods or services. It shows no GST amount.
- Blocked credit under GST (Section 17(5))Blocked credit is GST paid on purchases that cannot be claimed as input tax credit even when used in business, because section 17(5) of the CGST Act specifically disallows it — such as food, most passenger cars and construction of buildings.
- Composition scheme (GST)The composition scheme is an optional, simpler GST scheme for small taxpayers: they pay tax at a low fixed percentage of turnover, file quarterly, but cannot charge GST on their invoices or claim input tax credit.
- GST registration limitA business must register under GST once its aggregate turnover in a financial year crosses ₹40 lakh if it supplies only goods, or ₹20 lakh if it supplies services — with lower limits in some special-category states — or earlier if it falls in a compulsory registration category.
- GSTR-1 vs GSTR-3BGSTR-1 is the return of outward supplies — invoice-wise details of sales. GSTR-3B is the summary return in which tax is actually paid and input tax credit claimed. Both are filed by regular GST taxpayers.
- ITC reversal under GSTITC reversal means paying back input tax credit already claimed, or not claiming it, when the conditions for credit are not met — for example the supplier is not paid within 180 days, or inputs are used for exempt supplies.