GST Place of Supply for Consulting Services Across States: IGST vs CGST/SGST Guide
Consulting invoices are usually not complicated because of what was delivered; they become complicated because of who received the service and where that recipient is registered. A single wrong GSTIN or State can create client ITC issues and later GST mismatches.
Place of Supply: The Rule That Decides IGST vs CGST/SGST
In GST, the tax type is not decided only by the address printed on the invoice. The analysis starts with the location of supplier and the place of supply. If the location of supplier and place of supply are in the same State or Union territory, the supply is generally intra-State and CGST plus SGST/UTGST applies. If they are in different States, or if the law treats it as inter-State, IGST applies.
For the connected rule or filing step, see GST Calculator — Inclusive, Exclusive, CGST, SGST and IGST.
| Service situation | Default / special place-of-supply logic | Why finance teams care |
|---|---|---|
| B2B general services within India | Location of the registered recipient, unless a special rule applies | Wrong customer GSTIN or State can break the client's ITC flow. |
| B2C general services within India | Recipient location if address exists; otherwise supplier location | Address-on-record discipline becomes important. |
| Immovable-property linked services | Place where immovable property is located or intended to be located | Hotel, venue, real estate, architecture and fit-out invoices need special review. |
| Training, event, admission and performance services | Depends on recipient type and where performed / event is held | Common source of wrong IGST vs CGST/SGST classification. |
| International services | Section 13 rules apply when supplier or recipient is outside India | Critical for export-of-services and intermediary analysis. |
Core Rule for Most B2B Consulting
For many general consulting services where both supplier and recipient are in India and no special service rule applies, the place of supply to a registered person is the location of that registered person. This is why customer GSTIN and State matter. If the client wants the invoice on its Maharashtra GSTIN, but the engagement is actually consumed or contracted by its Karnataka unit, finance teams should confirm the correct recipient before invoicing.
| Consulting scenario | Likely invoice logic | Control needed |
|---|---|---|
| Management consultant in Delhi billing registered Mumbai client | IGST if supplier State and recipient State differ | Validate customer GSTIN and place-of-supply State. |
| Agency billing client branch in same State as supplier | CGST/SGST if supplier and place of supply are same State | Use correct branch GSTIN, not head office by default. |
| Consulting linked to immovable property | Special immovable-property rule may apply | Review property location and service scope. |
| On-site training or event support | Training/event rules may override general rule | Check recipient registration and actual performance/event location. |
| Foreign client advisory | Section 13 export analysis required | Check export conditions and intermediary risk. |
Worked example
A Bengaluru-registered management consultancy signs a ₹18 lakh engagement with a company headquartered in Mumbai (Maharashtra GSTIN) whose day-to-day work is actually commissioned and consumed by its Pune business unit. The contract, purchase order and email trail all name the Pune unit as the party engaging the consultants, but Pune does not hold a separate GST registration - the client is registered only in Maharashtra. Because the registered recipient is the Maharashtra GSTIN (regardless of which internal team actually uses the advice), place of supply is Maharashtra, and since the consultancy is registered in Karnataka, the invoice correctly carries IGST. Had the client instead asked to route the invoice through a genuinely separate Karnataka-registered subsidiary that was NOT the actual contracting party, that would have been the "different branch GSTIN" trap the Core Rule section above warns about - the consultancy must confirm who is legally the recipient under the contract, not simply invoice wherever the client requests.
Common Mistakes in Consulting Invoices
- Using the address in the contract but not the GSTIN used by the recipient.
- Charging CGST/SGST because work was performed from the consultant office, even when B2B recipient is in another State.
- Ignoring special rules for property-linked, event-linked or training services.
- Using one invoice series for multiple GSTINs without clear State mapping.
- Not keeping a contract note explaining why IGST or CGST/SGST was charged.
Official References Used
This article uses official GST law, GST portal guides and CBIC circulars only. Verify rates, forms and procedural changes before publishing because GST notifications and portal flows can change.
Frequently Asked Questions
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- GST & Indirect Tax
- Official starting point
- www.gst.gov.in
Page source links
Primary sources & related provisions
Statutory provisions referenced in this guide: