GST Place of Supply for Online Services: B2B, B2C, Export and OIDAR-Style Cases
The hardest GST question in online services is not always the tax rate. It is deciding where the supply is deemed to happen. That answer drives IGST versus CGST/SGST, export treatment, customer ITC and refund eligibility.
For the connected rule, example or next step, see GST Place of Supply for Services: B2B, B2C and Special Rules.
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, example or next step, see GST Place of Supply for Multi-State Consulting.
| 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. |
Why Online Services Need Extra Care
Online services are often supplied without physical presence, which makes invoice State, billing address, IP/location data, customer GSTIN and contract terms important. A SaaS subscription, a digital membership, a remote advisory call and a marketplace sale can all look similar in payment records but differ for place-of-supply purposes.
For the connected rule, example or next step, see GST Export of Services vs Intermediary Services: The Practical Difference.
| Customer type | Common rule direction | High-risk mistake |
|---|---|---|
| Registered Indian business | Usually customer location for general services unless a special rule applies | Billing to head office when service recipient GSTIN is different. |
| Unregistered Indian individual | Address on record matters; otherwise supplier location may apply | Collecting no State/address data on checkout. |
| Foreign business customer | Section 13 analysis; export conditions must be tested | Assuming foreign billing address alone proves export. |
| Foreign individual using digital content in India | OIDAR-style and recipient-location indicators may matter | Ignoring customer location indicators and payment evidence. |
| Marketplace/platform transaction | Contract chain must show who supplies to whom | Treating platform fee and customer revenue as one supply. |
Data Fields Every Checkout Should Capture
- Customer name and billing address with State/country.
- GSTIN for B2B Indian customers with legal name validation.
- Country of payment instrument / bank remittance where export is claimed.
- Service description that matches contract and invoice.
- Evidence that the recipient, not merely a payment intermediary, is outside India for exports.
When to Escalate for Tax Review
- You sell automated digital access to many countries.
- You sell to Indian users through a foreign platform.
- You provide services to group companies abroad.
- You bundle software, training and support in one package.
- You process refunds, credits and subscription upgrades frequently.
Finin2min Publishing Checklist Before Upload
- Cross-check every legal statement against the official source links below, especially if a notification has changed after this draft date.
- Add one practical example from the target audience — freelancer, SaaS seller, manufacturer, startup or finance team — before publishing.
- Link internally to the GST registration, GST return, GST ITC and GST notice-response pages wherever relevant.
- Avoid quoting a GST rate unless the current GST rate schedule or notification has been verified separately.
- End the article with a clear disclaimer that facts, contracts and portal status can change the final tax position.
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