GST Place of Supply Rules for Services — Complete Guide with Examples

Place of supply (POS) determines whether a GST transaction is inter-state (IGST) or intra-state (CGST + SGST). Getting the place of supply wrong leads to charging the wrong tax type — which creates credit issues for customers and demand notices. Here is the complete guide to GST place of supply rules for services.

General Rule — Domestic Services (Section 12)

• B2B (registered recipient): Place of supply = Location of the registered recipient (GSTIN state)
• B2C (unregistered recipient): Place of supply = Location of the service provider

Specific Rules Override the General Rule

Immovable property services (construction, real estate agents, hotel/accommodation):

• Place of supply = Location of the immovable property — regardless of where the supplier or recipient is located
• Example: A Bangalore architect designs a building for a Mumbai client's land in Calicut — POS is Kerala (Calicut)

Restaurant, catering, personal grooming, fitness, beauty treatment:

• Place of supply = Location where the service is actually performed

Training and performance-based services (when provided to an unregistered person):

• Place of supply = Location where the service is performed

Goods transport services:

• B2B: Location of registered recipient
• B2C: Location where goods are handed over for transport

Passenger transport:

• Place of supply = Place where the passenger embarks on the journey

Banking and financial services:

• Location of the recipient if address is on record — otherwise location of the supplier

Telecom services:

• Location of the billing address of the subscriber; or where the SIM is registered

Cross-Border Services — Section 13

• General rule: Place of supply = Location of the recipient (determines if IGST applies)
• If services are performed on a person (beauty treatment, surgery) — location where the service is performed
• If services relate to immovable property outside India — location of the property
• Online services (OIDAR) to individuals outside India: Location of the recipient outside India = Export of service (zero-rated)

Conclusion

GST place of supply rules for services require careful analysis of each transaction type — the specific rules override the general rule in many common business scenarios. SPOTON provides GST advisory on place of supply, inter-state vs intra-state classification and return filing for businesses across Kerala. Contact us for expert GST compliance services.