GST Place of Supply Determination

Place of supply is the single fact that decides whether your invoice carries IGST or CGST + SGST. The answer comes from Sections 10 to 13 of the IGST Act, 2017 read with Sections 7 and 8 (nature of supply). Pick the wrong tax head and the consequences are real - the recipient cannot claim input tax credit for the wrong head, the department issues a demand under Sections 73 / 74 / 74A CGST, and the only relief is a Section 77 CGST or Section 19 IGST refund of the wrongly paid tax after re-paying under the correct head.

The complexity multiplied after 1 October 2023 when Section 10(1)(ca) was inserted by the Finance Act 2023, shifting the place of supply for goods sold to unregistered persons to the delivery address recorded on the invoice. CBIC Circular 209/3/2024-GST dated 26 June 2024 clarified the rule but also created friction with the long-standing Section 10(1)(b) bill-to ship-to principle. Patron Accounting LLP issues written place of supply opinions that map every transaction flow to the correct sub-section and Circular, support invoice templates, and recover refunds under Section 77 / Section 19 where the wrong tax has already been paid.

Content is reviewed quarterly for accuracy.

A written POS opinion is recommended whenever the tax head is materially uncertain or has already been paid wrongly. Typical triggers:

• Bill-to ship-to flows where bill-to and ship-to are in different States (Section 10(1)(b))
• Ecommerce supply to unregistered persons where billing address and delivery address differ (Section 10(1)(ca), effective 1 October 2023)
• Goods assembled or installed at the customer site across State lines (Section 10(1)(d))
• Services on immovable property situated in a different State (Section 12(3))
• Performance-based services like training, repair, beauty, and restaurant - location of performance (Sections 12(4), 12(5))
• Telecom, banking, and insurance services - sub-section-specific rules (Sections 12(11) to 12(14))
• Cross-border services with foreign affiliates or customers - Section 13 (OIDAR Section 13(12), intermediary Section 13(8))
• Exports of services - Section 13(2) and Section 2(6) IGST Act zero-rated supply conditions
• Imports of services - Section 13 read with Section 7(4) IGST and reverse charge
• Any taxpayer who has paid IGST when CGST + SGST applied, or vice versa - the Sections 77 and 19 refund route

Statutory Deadline

There is no filing deadline for the POS opinion itself, but where wrong tax has been paid, the Section 77 / Section 19 refund must be claimed within 2 years from the date of payment of the correct tax under Rule 89 read with Circular 162/18/2021-GST. Voluntary correction under Section 73(5) before an SCN avoids penalty entirely.

Keep these ready for an efficient place of supply opinion:

• Customer master with billing and shipping addresses, and GSTIN where registered
• 12-month sample invoices for each transaction flow
• Contracts, purchase orders, and master service agreements
• Shipping records, lorry receipts, and e-way bills
• Ecommerce platform data (for Section 10(1)(ca) cases)
• Group structure with all GSTINs (for cross-charge and bill-to ship-to)
• Foreign affiliate agreements (for Section 13 cross-border services)
• Any past Section 77 / 19 refund applications or departmental correspondence

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free GST Place of Supply Determination consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

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Trusted by leading brands - Hyundai, Asian Paints, Bridgestone, and growing SMEs across manufacturing, ecommerce, SaaS / OIDAR, and exporters.

Outcome proof: a Delhi-based SaaS exporter that had paid INR 47 lakh of CGST + SGST on what qualified as export of services recovered the full amount under the Section 19 IGST refund route with our Form GST RFD-01 filing, within the 2-year window from re-payment.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves businesses across India - both in-person and remotely. See our GST registration support in Delhi for local assistance.

• GST Services - the complete GST services hub covering registration, returns, ITC, refunds, notices and audits.
• GST Refund - including Section 77 / 19 wrong-head refunds and export-of-services refunds.
• GST Notice Reply - ASMT-10, DRC-01A, and DRC-01 representation on POS and wrong-head disputes.
• GST Returns for E-Commerce Operator - GSTR-8, TCS rules, and Section 10(1)(ca) reporting for ecommerce.
• GST Returns for OIDAR - place of supply for OIDAR under Section 13(12) and Section 14 IGST.
• GST Audit - statutory and management audit including a POS review across all transaction flows.

Place of supply also interacts with GST classification and HSN/SAC advisory (e.g. installed goods and immovable property services) and GST valuation services, where valuation and place of supply together drive the final IGST/CGST/SGST split - Patron runs both as companion engagements.

Wrong-head refund: where CGST + SGST has been paid on an inter-state supply (or IGST on an intra-state supply), the taxpayer re-pays under the correct head and claims a refund of the wrongly paid tax in Form GST RFD-01 within 2 years from the date of the correct payment. Interest on the wrongly paid tax is waived under Section 77(2) CGST and Section 19(2) IGST, and Circular 162/18/2021-GST sets the procedure.

Authoritative references: CBIC - IGST Act, 2017 (Tax Information Portal), Circular 162/18/2021-GST (wrong-head refund), and Circular 209/3/2024-GST (Section 10(1)(ca)).

Every month of wrong-head tax compounds the refund problem. The Section 77 / 19 refund window is 2 years from re-payment under the correct head - and many businesses lose the window simply by not knowing it exists.

Demand under Section 74 carries 100 percent penalty plus 18 percent interest per annum. A defensible POS opinion - starting from INR 9,999 - locks down the right tax head on the next invoice and unlocks refund recovery on past ones.

Place of supply is the smallest decision with the largest tax consequence under GST. Sections 10 to 13 of the IGST Act, 2017 set the framework - 5 limbs plus a new 10(1)(ca) for goods, 14 sub-sections for domestic services, and 13 sub-sections for cross-border. Get any of them wrong and the tax invoice carries the wrong head, the recipient cannot claim ITC, and the department issues a demand.

Patron Accounting LLP, with CA and CS professionals practising for 15+ years across Pune, Mumbai, Delhi, and Gurugram, issues written POS opinions, files Section 77 / 19 refund applications, and represents taxpayers through GSTAT and High Court writ jurisdiction. A clear opinion today protects every invoice you issue tomorrow.

Pair this with our GST Refund engagement for wrong-head recovery, GST Notice reply for POS disputes, and GST Returns for OIDAR for cross-border service reporting.