For ordinary domestic services, B2B place of supply is generally the registered recipient location and B2C place is generally the supplier location.
For ordinary domestic services, B2B place of supply is generally the registered recipient location and B2C place is generally the supplier location. Specific rules override this for property, events, transport, telecom, banking, intermediary, online and cross-border services.
Legal or Computational Framework
Governing rule
Place of supply determines whether IGST or CGST plus SGST or UTGST applies and whether a cross-border service qualifies as export. Supplier and recipient establishments must be identified before applying the rule.
Correct workflow
Identify supplier location and recipient status; classify the service; apply the specific section before the general rule; determine place of supply; select intra-State or inter-State tax; document export or SEZ conditions.
Step-by-step method
- Identify supplier location and recipient status.
- classify the service.
- apply the specific section before the general rule.
- determine place of supply.
- select intra-State or inter-State tax.
- document export or SEZ conditions.
Worked example
A Delhi consultant supplies ordinary advisory service to a GST-registered Karnataka client: place is Karnataka and IGST applies. Advice linked directly to a Mumbai property can follow the immovable-property rule.
The example is an audit trail, not a substitute for the user's facts. Change one input—residence, payment date, tax year, asset, return form, GST status, employer category or supporting document—and the result can change.
Edge cases
- Bill-to and ship-to is mainly a goods concept: record the factual and legal conclusion in the working paper.
- Recipient GSTIN must match the relevant establishment: record the factual and legal conclusion in the working paper.
- Intermediary classification can change export result: record the factual and legal conclusion in the working paper.
- Event admission and organisation have different rules: record the factual and legal conclusion in the working paper.
- Online database services have special rules: record the factual and legal conclusion in the working paper.
What Generic Pages Miss
- Using billing address mechanically.
- Applying general rule before specific rule.
- Calling every foreign-client service export.
- Using supplier State for all B2C services.
- Ignoring fixed establishment.
Generic pages often confuse gross income with net receipt, TDS with final tax, GST turnover with income-tax turnover or a portal value with legal eligibility. Finin2min should show why an amount is accepted, deferred, reversed, rejected or carried forward.
Practical Documentation Checklist
- Contract and scope
- Supplier/recipient GSTIN
- Recipient establishment proof
- Property/event/transport data
- Export payment and LUT
- Place-of-supply memo
See the broader GST & Indirect Tax knowledge hub for related rules and calculators on this topic.
Finin2min Summary
For ordinary domestic services, B2B place of supply is generally the registered recipient location and B2C place is generally the supplier location. Specific rules override this for property, events, transport, telecom, banking, intermediary, online and cross-border services.
Finin2min rule: classify the legal event, calculate from source records and show every adjustment.
Frequently Asked Questions
What is the direct answer for GST place of supply services? ▼
For ordinary domestic services, B2B place of supply is generally the registered recipient location and B2C place is generally the supplier location. Specific rules override this for property, events, transport, telecom, banking, intermediary, online and cross-border services.
Which law or period applies? ▼
Place of supply determines whether IGST or CGST plus SGST or UTGST applies and whether a cross-border service qualifies as export. Supplier and recipient establishments must be identified before applying the rule. AY 2026–27 remains under the Income-tax Act, 1961; income from 1 April 2026 is governed by the Income-tax Act, 2025 where relevant.
What calculation or workflow should be followed? ▼
Identify supplier location and recipient status; classify the service; apply the specific section before the general rule; determine place of supply; select intra-State or inter-State tax; document export or SEZ conditions.
What does the example demonstrate? ▼
A Delhi consultant supplies ordinary advisory service to a GST-registered Karnataka client: place is Karnataka and IGST applies. Advice linked directly to a Mumbai property can follow the immovable-property rule.
Which records should be retained? ▼
Keep contract and scope, supplier/recipient GSTIN, recipient establishment proof, property/event/transport data, export payment and LUT so the result can be reproduced and defended.
What is the most common error? ▼
The most frequent errors are using billing address mechanically and applying general rule before specific rule.