GST · Place of Supply

GST Place of Supply for Online Services: B2B, B2C, Export and OIDAR-Style Cases

Finin2min GST Desk·June 2026·8 min readONLINE SERVICES

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.

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.

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.

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.

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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

Does online service always mean IGST? ▼

No. IGST applies when the place-of-supply result and supplier location make the supply inter-State, or where law deems it inter-State. Intra-State supplies can still attract CGST/SGST.

Is billing address enough for place of supply? ▼

It is important but not always sufficient. Customer GSTIN, recipient location, nature of service and special rules must also be checked.

Can I treat all overseas digital sales as export? ▼

No. Export requires all statutory conditions, including place of supply outside India and payment/recipient tests.