⚠ BETA — all market data shown (deals, filings, prices, indices) is demo / illustrative, not live trading data. For evaluation only; verify before acting.
June 14, 2026
The Dispatch

Definition

Place of Supply

Place of supply is the rule under GST that determines the location where a transaction is deemed to occur, deciding whether CGST plus SGST or IGST applies.

Because GST is destination-based, identifying the place of supply is essential to know which state gets the tax and whether the supply is intra-state or inter-state. Different rules apply to goods, services, imports and exports, with special provisions for things like transport, telecom and online services.

Getting the place of supply wrong can mean paying the wrong type of tax — for example IGST instead of CGST and SGST — leading to refund and credit complications. It is therefore a frequent source of disputes, especially for service providers operating across multiple states.

Related terms

  • Input Tax Credit (ITC)Input Tax Credit lets a GST-registered business offset the tax it has already paid on purchases against the GST it collects on sales, so tax is levied only on value added.
  • CGST, SGST, IGST and UTGSTThese are the four components of GST: CGST and SGST apply to sales within a state, IGST to inter-state sales, and UTGST to sales within union territories.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.