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V

IGST Act · Chapter V

Place of Supply of Goods or Services or Both

5 sections authoredIGST Act, 2017

BHARAT TAX

Treatise on the Integrated Goods and Services Tax Act, 2017

CGST · IGST · UTGST · DGST · Rules thereunder

INTEGRATED GOODS AND SERVICES TAX ACT, 2017

Chapter V — PLACE OF SUPPLY (Sections 10-14)

Chapter Index — fourteen-section practitioner architecture

Effective from 1 July 2017 (IGST Act, 2017) | First Edition | May 2026

[The place-of-supply heart of IGST — POS for goods (10-11), POS for domestic services (12), POS for cross-border services (13), OIDAR special provision (14)]

1. Scope at a Glance

Chapter V of the IGST Act (ss. 10-14) is the place-of-supply (POS) heart of the IGST regime. POS determines whether a supply is inter-State (IGST) or intra-State (CGST+SGST), which State takes apportioned revenue, where compliance attaches, and whether export-of-services qualification arises. Five sections — s. 10 for domestic goods (5 clauses), s. 11 for imports/exports of goods (2 clauses), s. 12 for services with both parties in India (14 sub-sections), s. 13 for services with supplier or recipient outside India (13 sub-sections), s. 14 for OIDAR special provision (2 sub-sections). Together they form the most complex and most litigated chapter of the IGST Act.

2. Section-by-Section Synopsis

SECTION

OPERATIVE SYNOPSIS

Section 10 — POS for goods (domestic)

Five clauses + sub-s. (2) residual. (a) movement-involving = location at termination; (b) bill-to-ship-to = third-party PoB; (c) static = location at delivery; (d) assembly/installation = installation site; (e) on-board conveyance = boarding location.

Section 11 — POS for imports/exports of goods

Two clauses. (a) imports = location of importer; (b) exports = location outside India. Channels imports into s. 7(2) + s. 5(1) proviso + s. 3(7) Customs Tariff; exports into s. 7(5)(a) + s. 16 zero-rated.

Section 12 — POS for domestic services

Fourteen sub-sections. (1) applicability; (2) default — registered = location, non-registered = address-on-record or supplier; (3)-(14) specific rules for immovable / hospitality / restaurant / training / events / transportation (goods/passenger/on-board) / telecom / banking / insurance / advertisement to Govt. FA 2018 inserted proviso to (8) for outside-India destinations.

Section 13 — POS for cross-border services

Thirteen sub-sections. (1) applicability; (2) default = recipient location; (3) performance for physical-goods services; (4) immovable property; (5) events; (6) multi-location; (7) multi-State split; (8) supplier-location (banking/intermediary/short-term hire); (9) goods transportation = destination; (10) passenger = embarkation; (11) on-board = first scheduled departure; (12) OIDAR = recipient + 7-factor test; (13) Government anti-double-taxation power. Microsoft Regional Sales (Bombay HC 2024) pending on (8)(b) intermediary.

Section 14 — OIDAR special provision

Two sub-sections. (1) Non-resident OIDAR supplier to non-taxable online recipient — supplier liable; intermediary deeming with 4-condition carve-out. (2) Simplified registration scheme; representative / appointee provisos. FA 2023 substantially broadened OIDAR + non-taxable-online-recipient scope.

3. Key Doctrines

DOCTRINE

SOURCE / APPLICATION

Location-of-delivery rule for movement (s. 10(1)(a))

POS = location at termination of movement.

Bill-to-ship-to deeming (s. 10(1)(b))

POS = principal place of business of third-party bill-to per Circular 184/2022.

Installation-site rule (s. 10(1)(d))

POS = installation site for EPC / assembly contracts.

On-board boarding-location rule (s. 10(1)(e))

POS = boarding location for railway/airline catering.

Imports = location of importer (s. 11(a))

Channels into s. 7(2) inter-State + s. 5(1) proviso.

Exports = location outside India (s. 11(b))

Channels into s. 7(5)(a) + s. 16 zero-rated.

Default recipient-location for services (s. 12(2)/(2)(a) + s. 13(2))

Destination-based VAT principle.

Immovable-property anchor (s. 12(3) + s. 13(4))

POS = property location; multi-State split per Explanation.

Performance-location rule (s. 12(4) + s. 13(3))

Restaurant / grooming / healthcare / on-physical-goods services.

Event-location rule (s. 12(6)/(7) + s. 13(5))

Cultural / sporting / educational / entertainment events.

Transportation-destination rule (s. 12(8) FA 2018 proviso + s. 13(9))

Outside-India destination = POS at destination.

Intermediary supplier-location rule (s. 13(8)(b))

Intermediary services taxable at supplier location; Circular 159/2021 four-fold test + Microsoft Regional Sales pending challenge.

OIDAR 7-factor deemed-recipient test (s. 13(12) Explanation)

Any 2 of 7 indicators = recipient in taxable territory.

OIDAR intermediary 4-condition test (s. 14(1) proviso)

Platform deemed recipient unless 4 conditions satisfied.

FA 2023 broadened OIDAR / recipient scope

Substantial expansion of s. 14 forward-charge coverage.

4. Amendment Timeline

DATE / INSTRUMENT

CHANGE

22.06.2017 — Notif 1/2017-IT

s. 14 brought into force early (administrative spine).

01.07.2017 — Notif 3/2017-IT

ss. 10-13 brought into force on appointed-day.

29.08.2018 — IGST (Amendment) Act 2018

s. 5 inserted proviso to s. 12(8) for outside-India destinations; s. 6 substituted proviso to s. 13(3)(a) for repair/treatment of temporarily-imported goods. W.e.f. 01.02.2019.

31.12.2018 — Notif 04/2018-IT

Inserted Rules 4-9 in IGST Rules 2017 — POS proxies for cross-border services. W.e.f. 01.01.2019.

30.12.2021 — Notif 17/2021-CT(R)

Amended Notif 17/2017 to include restaurant + cloud kitchens in s. 5(5) ECO deemed-supplier; interacts with s. 12(4) POS for restaurants.

Finance Act 2023

Substantially amended s. 2(16) (non-taxable online recipient) and s. 2(17) (OIDAR). Broadened scope.

29.09.2023 — Notif 02/2023-IT

Notified FA 2023 OIDAR amendments effective date.

01.10.2023

Online gaming brought into OIDAR scope at 28% IGST.

27.10.2023 — Circular 202/14/2023

FA 2023 OIDAR operational clarifications.

2024 — Microsoft Regional Sales (Bombay HC)

s. 13(8)(b) intermediary rule Division Bench split — pending larger bench.

26.06.2024 — Circular 209/3/2024

Comprehensive POS clarifications.

5. Forms — Direct or Indirect Use in Chapter V

FORM

PURPOSE / TRIGGER

Tax invoice (Rule 46 CGST)

Must show POS for inter-State; State for intra-State.

E-way bill (Rule 138)

Destination matches POS under s. 10.

Bill of Entry (Customs)

Imports under s. 11(a) + s. 5(1) proviso.

Shipping Bill

Exports under s. 11(b) + s. 16.

GSTR-1 Tables 4 / 5A / 6A / 7

POS-wise reporting per Chapter V classifications.

GSTR-3B Table 3.1(a)/(b)/(c)/(d)

Tax payable / zero-rated / exempt / RCM inwards.

GSTR-5A

OIDAR monthly return.

Form REG-10

OIDAR simplified registration.

LUT (Form RFD-11)

For zero-rated exports.

RFD-01

Refund for zero-rated / inverted.

Self-invoice (Rule 36)

For RCM on cross-border B2B services under s. 5(3).

6. Due-Date / Compliance-Calendar Footprint

TRIGGER

TIMELINE

Tax invoice issuance

Per s. 31 CGST — goods before/at removal; services within 30 days.

GSTR-1 monthly

11th of following month; QRMP IFF 13th.

GSTR-3B monthly

20th / 22nd / 24th.

GSTR-5A monthly (OIDAR)

20th of following month.

E-way bill validity

Per distance.

Bill of Entry filing

At customs clearance.

LUT renewal annual

Before 1 April.

Refund applications

Within 2 years of relevant date.

7. Filing Frequency / Reporting Triggers

  • Monthly GSTR-1 — POS-wise inter-State + State-wise intra-State.
  • Monthly GSTR-3B — tax payable based on POS classification.
  • Monthly GSTR-5A — OIDAR foreign supplier returns.
  • Annual GSTR-9 + 9C — reconciliation including POS-wise.
  • E-way bill — at time of movement.
  • BoE / Shipping Bill — at customs.
  • Self-invoice for RCM — at time of cross-border B2B service.

8. CBIC Circulars / Notifications Summary

INSTRUMENT

SUBJECT

Notif 3/2017-Integrated Tax

Commencement.

Notif 04/2018-Integrated Tax (31.12.2018)

Inserted Rules 4-9 in IGST Rules for POS proxies w.e.f. 01.01.2019.

IGST Amendment Act 2018

Inserted proviso to s. 12(8) + substituted proviso to s. 13(3)(a). w.e.f. 01.02.2019.

Notif 02/2023-IT (29.09.2023)

FA 2023 OIDAR effective date.

Circular 159/15/2021-GST

Intermediary four-fold test.

Circular 161/17/2021-GST

Distinct-person export of services.

Circular 184/16/2022-GST

Bill-to-ship-to + transportation POS.

Circular 195/07/2023-GST

Repair/IT support/ancillary services POS.

Circular 199/11/2023-GST

HO-BO cross-charges (distinct-person framework).

Circular 202/14/2023-GST

FA 2023 OIDAR clarifications.

Circular 209/3/2024-GST

Comprehensive POS clarifications.

Notif 17/2017-IT(R) + 17/2021-CT(R)

ECO deemed-supplier framework; restaurant amendment.

Notif 1/2017 + 8/2017-IT(R)

Goods and services rate schedules.

Notif 10/2017-IT(R)

RCM on services.

Notif 4/2017-IT(R)

RCM on goods.

Notif 9/2017-IT(R) + 12/2017-CT(R)

Exempt goods / services schedules.

9. Sectoral Pointers — Chapter V Application

SECTOR

POINTERS

Manufacturing — inter-State goods

s. 10(1)(a) + s. 7(1); IGST.

EPC contractors

s. 10(1)(d) — installation site POS.

Railway / airline / cruise catering

s. 10(1)(e) + s. 12(10) — boarding / first departure.

IT / ITES exports

s. 13(2) recipient-location; Circular 161/2021 subsidiary-parent.

Intermediaries to foreign principals

s. 13(8)(b) supplier location = India; Microsoft Regional Sales pending.

Hotel chains / hospitality

s. 12(3) property location.

Restaurant / Food aggregators (Zomato, Swiggy)

s. 12(4) performance location + s. 5(5) ECO post 01.01.2022.

Cab aggregators (Uber, Ola)

s. 12(9) embarkation + s. 5(5) ECO.

Telecom operators

s. 12(11) formulaic rules per service type.

Banks / NBFCs

s. 12(12) + s. 13(8)(a) recipient/supplier location.

Insurance

s. 12(13) recipient location.

Government advertisement contracts

s. 12(14) State-wise split per contract.

Freight forwarders / GTA

s. 12(8) + s. 13(9) destination rules.

Foreign OIDAR suppliers (streaming, gaming, cloud)

s. 14 + FA 2023 broadened scope.

Online gaming platforms

s. 14 + 28% IGST + FA 2023 framework.

Repair / maintenance of temporarily-imported goods

s. 13(3)(a) FA 2018 proviso — export.

10. Practitioner Quick-Reference

SITUATION

QUICK ANSWER / SECTION

Inter-State movement of goods POS?

s. 10(1)(a) — termination of movement.

Bill-to-ship-to POS?

s. 10(1)(b) — bill-to party PoB; Circular 184/2022.

Import POS?

s. 11(a) — location of importer.

Export POS?

s. 11(b) — location outside India.

IT services to US client POS?

s. 13(2) — recipient location; export of services per s. 2(6).

Intermediary to foreign principal POS?

s. 13(8)(b) — supplier location = India; taxable.

OIDAR to Indian retail user POS?

s. 13(12) + s. 14; foreign supplier registers and pays.

OIDAR to Indian registered business POS?

s. 13(12); but s. 5(3) RCM (not s. 14).

Online gaming POS post 01.10.2023?

s. 14 + 28% IGST.

Restaurant via Zomato POS post 01.01.2022?

s. 12(4); but s. 5(5) ECO pays tax.

Hotel accommodation POS?

s. 12(3)(b) — hotel location.

Government advertisement multi-State POS?

s. 12(14) — State-wise split per contract.

Transportation to outside India POS?

s. 12(8) proviso (post FA 2018) + s. 13(9) — destination.

Repair of temporarily-imported goods POS?

s. 13(3)(a) FA 2018 proviso — recipient location (export).

11. Cross-Chapter Coordination

  • Chapter I (ss. 1-2) — definitional foundation; s. 2(13) intermediary, s. 2(16) NTOR, s. 2(17) OIDAR critical for Chapter V.
  • Chapter II (ss. 3-4) — officer authority; specialised Bengaluru jurisdiction for OIDAR.
  • Chapter III (ss. 5-6) — charging section consumes Chapter V POS for s. 7/s. 8 classification.
  • Chapter IV (ss. 7-9) — inter-State / intra-State classification gateway feeds from Chapter V POS.
  • Chapter VI (s. 15) — tourist refund.
  • Chapter VII (s. 16) — zero-rated supply for exports; depends on s. 11(b) + s. 13(2) POS outside India.
  • Chapter VIII (ss. 17-19) — apportionment of IGST collected; s. 19 for wrongly-paid IGST refund (mis-classification correction).
  • Chapter IX (ss. 20-25) — application of CGST; s. 22 rules for POS framework.
  • CGST Chapter III (ss. 7-11A) — supply definition; composite/mixed (principal-supply test).
  • CGST Chapter IV (ss. 12-15) — time of supply (anchors rate); value.
  • CGST Chapter V (ss. 16-21) — ITC architecture.
  • CGST Chapter VI (ss. 22-30) — registration; s. 24(xi) OIDAR.
  • CGST Chapter VII (s. 31) — tax invoice with POS particulars.
  • CGST Chapter IX (ss. 37-48) — returns including POS-wise GSTR-1.
  • Customs Act + Customs Tariff Act — for s. 11(a) imports + s. 5(1) proviso.

12. File-Link Navigation — Chapter V Files

FILE

COVERAGE

00 - Chapter V Index.docx (this file)

Chapter-level practitioner index.

Section 10 - POS for goods other than imports or exports.docx

Five clauses + residual; movement / bill-to-ship-to / static / assembly / on-board.

Section 11 - POS for goods imported into or exported from India.docx

Two clauses; importer location + outside-India location.

Section 12 - POS for services where supplier and recipient in India.docx

14 sub-sections; default + immovable / hospitality / restaurant / training / events / transportation / telecom / banking / insurance / Government advertisement.

Section 13 - POS for services cross-border.docx

13 sub-sections; default + performance / immovable / events / supplier-location (intermediary) / transportation / OIDAR / anti-double-taxation power.

Section 14 - OIDAR special provision.docx

2 sub-sections; simplified scheme + intermediary 4-condition + representative/appointee + FA 2023 broadened scope.

13. External Constitutional and Statutory Anchors

  • Article 246A — concurrent GST competence.
  • Article 269A — apportionment of IGST.
  • Article 297 — territorial waters vesting.
  • Article 245 + 286 — extraterritorial / outside-State restrictions.
  • POPS Rules 2012 — pre-GST POS framework (jurisprudential context).
  • IGST (Amendment) Act 2018 — proviso amendments to s. 12(8) and s. 13(3)(a).
  • Finance Act 2023 — substantial OIDAR + non-taxable-online-recipient amendments.
  • RBI Act 1934 — banking definitions in s. 13(8) Explanation.
  • FEMA 1999 + RBI Master Direction — export receipt framework.
  • Customs Act 1962 + Customs Tariff Act 1975 — for s. 11(a) imports.
  • OECD International VAT/GST Guidelines — international benchmark for OIDAR.
  • SEZ Act 2005 — for SEZ-supply POS analysis.

14. Key Takeaways

  • Chapter V is the most complex chapter of the IGST Act — POS determines everything downstream (inter-State vs intra-State, export qualification, ITC chain, State revenue allocation).
  • s. 10 (5 clauses + residual) for domestic goods; s. 11 (2 clauses) for imports/exports of goods; s. 12 (14 sub-sections) for domestic services; s. 13 (13 sub-sections) for cross-border services; s. 14 (2 sub-sections) for OIDAR.
  • Default rule for services — recipient location for B2B, supplier-location fallback for B2C without records.
  • Specific rules carve out immovable property (property location), performance (where actually performed), events (event location), transportation (origin/destination), telecom (formulaic proxies), banking/financial (recipient records).
  • Cross-border intermediary rule under s. 13(8)(b) — supplier location = India; Microsoft Regional Sales (Bombay HC 2024) pending larger bench. Circular 159/2021 four-fold test is operational anchor.
  • OIDAR framework under s. 14 — non-resident supplier registers and pays for B2C; B2B recipient pays RCM under s. 5(3).
  • FA 2023 substantially broadened OIDAR + non-taxable-online-recipient scope — major compliance reset for foreign digital service suppliers.
  • Online gaming brought into OIDAR scope at 28% IGST effective 01.10.2023.
  • FA 2018 amendments — proviso to s. 12(8) for outside-India transportation; substituted proviso to s. 13(3)(a) for repair of temporarily-imported goods.
  • Circulars 159/2021, 161/2021, 184/2022, 195/2023, 199/2023, 202/2023, 209/2024 are operative practitioner references.
  • For multi-State / multi-location supplies, apply Explanations to s. 12(3)/(7) and s. 13(7) — State-wise proportionate split per contract.
  • For honest POS mis-classification, s. 19 IGST refund + re-payment route without time-limit penalty.
  • Subscribe to CBIC notifications — POS framework continues to evolve through Circular clarifications.
  • Maintain master POS-determination matrix at customer / service type level for efficient invoicing.
  • Mohit Minerals, Bharti Airtel, GVK Industries, AIFTP, ALFSC, Larsen & Toubro, Imagic Creative, Tata Sky, Puttaswamy form the doctrinal backbone of Chapter V jurisprudence.

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