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GST worked examples: place of supply in multi-State and cross-border cases

Worked examples on place of supply: hotel bills covering two States, leased circuits, bill-to-ship-to across States, events, and repairs of goods brought from abroad.

Published 4 October 2026

Whether a supply bears IGST or CGST plus SGST depends on comparing the supplier's location with the place of supply. Most cases are straightforward. These worked examples cover those that are not: services spread over several States, and goods delivered on someone else's instructions. Figures are illustrations; rates are those in force on 04.10.2026.

I.1 — One hotel bill covering two States

Facts. A hotel chain bills a guest Rs. 30,000 from its Delhi registration for two nights in its Delhi hotel and one night in its Agra hotel (Rs. 10,000 a night).

  1. Place of supply of accommodation is the location of the property (section 12(3)). Where one charge covers properties in more than one State, Rule 4 of the IGST Rules apportions it by the number of nights in each.
  2. Delhi: Rs. 20,000 — supplier and place of supply in Delhi, so CGST + Delhi SGST.
  3. Agra: Rs. 10,000 — supplier in Delhi, place of supply in Uttar Pradesh, so IGST.
  4. Rate: accommodation above Rs. 7,500 per unit per day is taxed at 18% (from 22.09.2025); Rs. 10,000 a night is above that.

Result. Rs. 3,600 CGST + SGST and Rs. 1,800 IGST. Billing the Agra night from the chain's Uttar Pradesh registration would make that part intra-State instead.

I.2 — Leased circuit running through three States

Facts. A telecom company provides a leased circuit linking offices in Delhi, Bengaluru and Chennai for a single charge of Rs. 9,00,000.

  1. For a leased circuit, the place of supply is where the circuit is installed (section 12(11)(a)). Where the circuit spans States, Rule 6 of the IGST Rules apportions the charge by the number of points in each State.
  2. One point in each State: Rs. 3,00,000 each to Delhi, Karnataka and Tamil Nadu.
  3. Each part is compared with the supplier's location to decide between IGST and CGST + SGST.

Result. Three places of supply on one bill.

I.3 — Bill-to-ship-to across three States

Facts. Supplier A (Mumbai) delivers goods to C's warehouse in Pune on the instructions of B, whose principal place of business is in Delhi. A invoices B; B invoices C.

  1. A to B: where goods are delivered to a third person on the buyer's instructions, the place of supply is the buyer's principal place of business — Delhi (section 10(1)(b)). A is in Maharashtra: IGST.
  2. B to C: place of supply is where the movement ends — Pune. B is in Delhi: IGST.

Result. Two inter-State supplies, although the goods never leave Maharashtra. Compare example A.4, where all three parties are in one State.

I.4 — Conference organised in another State

Facts. A Mumbai event company organises a conference in Goa for a registered Delhi company, for Rs. 10,00,000.

  1. For services relating to organising events, the place of supply is the registered recipient's location — Delhi (section 12(7)(a)); for an unregistered recipient it would be where the event is held.
  2. Supplier in Maharashtra, place of supply in Delhi: IGST 18% = Rs. 1,80,000.

Result. The tax follows the registered customer, not the venue, so the Delhi company can take the credit.

I.5 — Repairs to goods temporarily brought from abroad

Facts. A Chennai workshop repairs a machine sent by a foreign customer, which is re-exported after repair without being put to use in India.

  1. Services on goods physically made available by the recipient are generally supplied where performed (section 13(3)(a)), but the proviso excludes goods temporarily imported for repairs and exported after repair without use in India.
  2. The place of supply then falls to the general rule — the recipient's location, outside India — and the service can qualify as an export.

Result. Zero-rated, if the other export conditions are met.

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