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GST Return Filing & Invoicing
Simplified with ClearTax GST Software

We have already covered the place of supply of goods in our article. You will find that determination of place of supply for goods simpler than services, as goods are tangible. It is a crucial aspect under GST because wrong determination of place of supply will result tax collection by wrong authority. For example, inter-state supply is wrongly treated as intra-state supply and CGST & SGST filled instead of IGST. The only option is to pay IGST separately and claim refund of CGST & SGST.

Rules for location of recipients and service providers have already been covered in our previous article. In the following articles, we will cover specific rules for specific services.

General Rules for Place of Supply of Services

(except those covered separately)

Example 1- Registered Person

Mr. Ajay (Karnataka) provides consultancy services to M/s Sumati Technologies Ltd. (registered in Maharashtra).

Place of supply: Maharashtra (location of registered person)

GST: IGST

Example 2 – Unregistered Person

Mr. Ajay (Karnataka) provides consultancy services to Mr. Vijay (unregistered but address on record shows Tamil Nadu).

Place of supply: Tamil Nadu (address of unregistered person is available)

GST: IGST

Example 3 -Unregistered Person & address is not available

Mr. Ajay (Karnataka) provides consultancy services to Mr. Anand (unregistered and address is not available).

Place of supply: Karnataka (unregistered person)

GST: CGST + SGST

How our software can help you?

ClearTax GST Software will make your life much easier. You do not have to calculate the place of supply each and every time for your sales invoices.

All you need to do is enter the details of your buyer in the contacts master. You can use ClearTax Bill Book to generate sales invoices. Based on your buyer’s and your GSTIN the software will automatically calculate the place of supply according to the provisions and inform you whether you will charge CGST/SGST or IGST.

For your purchases invoices, all you need to do is upload the excel copy of your purchase invoices. The software will do the rest.

We have an entire series of articles on place of supply-

  • Place of supply of goods
  • Place of supply of general services
  • Place of supply for specific services
  • Place of services related to immovable property
  • Place of supply for transportation services
  • Place of supply for telecommunication services
  • Place of supply for financial services
  • Place of supply for online information and database access or retrieval services
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