Place of Supply
Also called: POS rules
What is Place of Supply?
Place of supply is the legally determined location of a transaction for GST purposes. It decides whether you charge CGST plus SGST or IGST, and which state ultimately receives the tax — regardless of where your office happens to be.
Why Place of Supply matters
Every wrong place-of-supply call produces a wrong tax head on the invoice, which the customer's credit claim then fails on. Correcting it later means credit notes and amendments rather than a quick edit.
How Place of Supply works in practice
For goods the place of supply is generally where the movement ends. For services, the default is the recipient's location for registered customers, with special rules for immovable property, restaurants, events and transport, where the physical location of the service governs.
Worked example
A restaurant meal is taxed where the restaurant is, even if the diner is registered in another state.
Frequently asked questions
Not always. Delivery location and the nature of the service can override the billing address.