Place of Supply Under GST
It decides whether you charge CGST and SGST or IGST. Getting it wrong is not a rounding error - the tax goes to the wrong government.
Why this is more than a formality
If the place of supply is in your own state, you charge CGST and SGST. If it is in another state, you charge IGST. The total is often the same, so it feels like a labelling question.
It is not. The two taxes go to different governments, and paying the wrong one does not discharge the right one. Correcting it means paying again and claiming a refund of what was wrongly paid, which is slow.
Your customer is affected too, because credit of the wrong tax is not available to them, which is usually how the error is discovered.
Where it gets decided
- Goods — generally where the movement ends, which is not always the billing address.
- Services — generally the recipient's location where they are registered, with a long list of specific rules for particular services.
- Services connected to immovable property follow the property's location, not the parties'.
- Bill-to and ship-to differing has its own treatment and is where mistakes cluster.
- Exports and SEZ supplies have their own rules.
Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.
Common questions
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Tell us what you supply and where your customers are. This is worth getting right once rather than correcting later.
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Other GST work that comes up once you are registered.