GST Place of Supply for Multi-State Consulting
Consulting businesses often serve customers across states without physical delivery. Place of supply determines whether IGST or CGST/SGST applies and should be decided before invoicing.
Answer first: for an ordinary B2B consulting engagement, the place of supply is the registered recipient's state (Section 12(2), IGST Act) — not where the consultant sits, and not where the work is physically done. If the consultant's own state matches the recipient's registered state, charge CGST+SGST; if they differ, charge IGST. Two exceptions override this: consulting tied to a specific immovable property (architecture, interior design, engineering) follows the property's location instead (Section 12(3)), and a consultant acting as an intermediary between a foreign client and another party is fixed at their own location in India (Section 13(8)) — which can quietly disqualify what looks like a foreign-currency export from zero-rating. Current-law status: this reflects Sections 12 and 13 of the IGST Act, 2017, unchanged as of August 2026.
For broader context, see the GST Law & Practice Hub.
Place-of-supply decision table
| Fact | Invoice control |
|---|---|
| Registered business customer (B2B) | Place of supply = recipient's GSTIN-registered state (Section 12(2)). Compare to supplier's own state: same state → CGST+SGST; different state → IGST. |
| Unregistered customer (B2C) | Place of supply = recipient's address on record if one exists in the invoice/order; otherwise defaults to the supplier's own location. |
| Multiple recipient locations/branches | Identify the specific recipient establishment most directly concerned with the supply — usually the branch that actually engaged and will use the service, evidenced by the SOW/PO, not just the head-office GSTIN. |
| Consulting tied to specific immovable property | Section 12(3) overrides the default: place of supply = location of the property itself, regardless of the client's registered state. |
| On-site vs remote delivery | Irrelevant to place of supply for ordinary consulting under the default rule — resist the instinct to invoice based on where the work happened. |
| Cross-border/foreign client | Section 13 applies instead of Section 12. If the consultant is genuinely supplying the service directly, default is the recipient's location (supporting export/zero-rating subject to other conditions). If the consultant is an intermediary arranging a supply between two other parties, Section 13(8) fixes the place of supply at the intermediary's own location in India — GST applies despite the foreign client and foreign-currency payment. |
For the connected rule, example or next step, see GST Registration for Multi-State Consulting Businesses.
Controls
- Collect customer GSTIN and billing state before onboarding.
- Lock tax type based on place-of-supply review.
- Maintain contract/SOW to support service location.
- Review multi-branch customers separately.
- Reconcile invoice tax type with GSTR-1.
For the connected rule, example or next step, see GST Place of Supply for Services: B2B, B2C and Special Rules.
Finin2min warning
⚠ Disclaimer: Educational content only, not tax advice. Place-of-supply outcomes depend on the exact facts of each engagement (service type, contract terms, recipient's registration and address history); confirm classification with a qualified GST practitioner before invoicing, especially for the immovable-property and intermediary exceptions.
Official sources used
This article is intentionally source-limited to official GST / CBIC / India Code material. Verify final filing positions with the latest Act, Rules, notifications, circulars and GST portal advisories before publishing.
- India Code: Central Goods and Services Tax Act, 2017 official record
- CBIC Tax Information Portal
- Goods and Services Tax Portal
FAQs
Under Section 12(2), for B2B it's the registered recipient's state (their GSTIN), regardless of where the consultant is based or where the work is done. For B2C, it's the recipient's address on record, or the supplier's own location if no address was captured.
Generally no, under the default rule — only the recipient's registered state (B2B) or address on record (B2C) matters. Assuming the invoice should follow the work location is a common, costly mistake.
Under Section 12(3), if the service is directly tied to a specific immovable property (architecture, interior design, engineering), the place of supply is the property's location instead of the recipient's registered state.
No. Under Section 13(8), a consultant acting as an intermediary — arranging a supply between two other parties rather than supplying the main service — has their place of supply fixed at their own location in India, disqualifying it from export treatment despite the foreign client and foreign-currency payment.
Yes, and verified on the GST portal. For B2B, the GSTIN's registered state is the entire basis for the place-of-supply and tax-type decision, so an unverified or wrong GSTIN can put the wrong tax type on the invoice.
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