(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under — (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the…
10
IGST Act · Section 10
POS for goods other than imports or exports
Chapter V — Place of Supply of Goods or Services or BothIGST Act, 2017
Section 10 — Place of supply of goods other than supply of goods imported into, or exported from India
(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under —
(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;
(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person;
(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;
(d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly;
(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.
(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed.
BLOCK 2 — PRE-GST COUNTERPART / PARALLEL PROVISIONS / OPERATIVE RULES
PARALLEL / PRE-GST INSTRUMENT
COUNTERPART AND COMPARATIVE NOTE
CST Act 1956 — s. 3
Pre-GST inter-State sale by movement test or transfer of documents during movement. Operative source for s. 10(1)(a) and (b) IGST.
CST Act 1956 — s. 6(2) (E1-E2 sale-in-transit)
Pre-GST sale-in-transit framework using C-Form / E1-E2 declarations. s. 10(1)(b) IGST bill-to-ship-to is the GST successor — but simplified (no separate forms).
CST Act 1956 — s. 4 (situs of sale)
Pre-GST rules for determining where sale takes place; s. 10(1)(c) IGST for static supplies is the GST counterpart.
K. Gopinathan Nair (1997) 10 SCC 1
Classic case on inter-State sale by movement — informs s. 10(1)(a) interpretation.
Steel Authority of India v State of Orissa (2000) 3 SCC 200
Sale-in-transit / Bill-to-ship-to interpretation — informs s. 10(1)(b) IGST.
Circular No. 184/16/2022-GST
Operative CBIC circular on s. 10(1)(b) bill-to-ship-to — clarifies POS in three-party situations.
Notification No. 1/2017-Integrated Tax (Rate)
Goods rate schedule applies once POS under s. 10 determined.
Constitution Article 286(1)
Restriction on State taxation outside State — protected by s. 10 mechanical rules.
E-way bill framework (Rule 138 CGST Rules)
POS under s. 10 anchors e-way bill destination.
Foreign Trade Policy 2023
For deemed exports under s. 147 — POS still under s. 10 (no movement out of India).
BLOCK 3 — COMMENTARY
1. Statutory Architecture
ELEMENT OF THE SECTION
PARAMETER / OPERATIVE CONTENT
Section
s. 10 IGST — POS for goods (non-import/export domestic supplies)
Sub-sections
Two — (1) five clauses (a)-(e) for different supply scenarios; (2) residual rule for non-determinable POS
Marginal note
Place of supply of goods other than supply of goods imported into, or exported from India
Operative trigger
Domestic supply of goods (non-import/export); POS determined by supply pattern (movement, bill-to-ship-to, static, assembly, on-board)
Parties affected
Every supplier and recipient of domestic goods; e-commerce sellers; multi-State manufacturers; assembly contractors
Time-anchor
Effective 01.07.2017
Value-anchor
Not direct; value under s. 15 CGST
Place-of-supply nexus
s. 10 IS the POS-for-goods provision; feeds s. 7(1) / s. 8(1) classification
Rate / charge
Rate from Notification 1/2017-IT(R); attaches based on s. 7/s. 8 characterisation post-POS determination
ITC interaction
POS determines IGST vs CGST+SGST output, which affects recipient ITC chain
RCM applicability
RCM under s. 5(3) for notified goods (Notif 4/2017-IT(R)) — POS under s. 10 still controls
Exemption mechanism
Notif 9/2017-IT(R) exempt goods — POS under s. 10 still determined
Refund route
POS under s. 10 anchors inter-State characterisation for zero-rated / inverted refunds
Return reporting
GSTR-1 Table 5A (B2B inter-State POS-wise) / 4A (B2B intra-State State-wise)
Penalty
Mis-classification of POS attracts s. 73 / 74 CGST applied via s. 20 IGST
Prosecution
Wilful POS mis-classification with evasion intent — s. 132 CGST
Cross-statute interplay
CST Act jurisprudence (K. Gopinathan Nair, Steel Authority) informs interpretation; Customs Act for excluded imports/exports
Repeal and saving
CST Act inter-State sale framework ceased; pre-GST sale-in-transit jurisprudence partially survives in s. 10(1)(b) interpretation
2. Historical Context
Pre-GST, the place of taxation for inter-State goods was determined under the Central Sales Tax Act 1956 — primarily s. 3 (inter-State sale by movement or transfer of documents during movement) and s. 4 (sale outside State / situs of sale). The CST framework evolved through decades of jurisprudence — K. Gopinathan Nair (1997), Steel Authority (2000), 20th Century Finance, and a body of HC rulings on sale-in-transit, E1-E2 declarations, and bill-to-ship-to deliveries.
Section 10 IGST simplifies this with five mechanical clauses. Sub-clause (a) — movement-involving supplies: POS = location at termination of movement. This captures the bulk of B2B and B2C deliveries. Sub-clause (b) — bill-to-ship-to: POS = principal place of business of the third party (the bill-to person). This is the GST successor to CST E1-E2 sale-in-transit framework, but without separate declarations.
Sub-clause (c) — static supplies (no movement): POS = location of goods at delivery. Covers transfer of stationary goods, certain real-estate-attached goods, etc. Sub-clause (d) — assembly/installation at site: POS = installation/assembly location. Critical for EPC contracts, plant-installation, modular construction. Sub-clause (e) — on-board conveyance (vessel, aircraft, train, motor vehicle): POS = location at which goods taken on board. Critical for railway/airline catering, in-flight retail, train pantry, etc.
Sub-section (2) is the residual rule — for supplies where POS cannot be determined under sub-section (1), POS is determined as prescribed. As of date, no separate residual-POS rule has been notified — sub-section (1) is intended to be exhaustive in practice.
The most consequential operational guidance is CBIC Circular 184/16/2022-GST on bill-to-ship-to under sub-clause (b). It clarifies that in three-party transactions where supplier A delivers to ship-to recipient C on instruction of bill-to party B, the POS is the principal place of business of B (not of C). This preserves the CST sale-in-transit logic in the GST framework.
The sub-clause (d) installation/assembly POS rule has significant planning implications for EPC contracts. The POS is the installation site, not the place of dispatch. For a power plant installed in Gujarat by an Maharashtra-based contractor sourcing components from Tamil Nadu, the POS is Gujarat (installation site) — inter-State supply from contractor's perspective, with Gujarat IGST. Component-level transactions are separately analysed.
3. Judicial Evolution
Larsen & Toubro Ltd v State of Karnataka — (2014) 1 SCC 708 [Supreme Court — 3-Judge Bench]
Brief Facts: Question of whether a works-contract for construction of an apartment complex involves a 'deemed sale' of goods (Article 366(29A)(b)) at every stage of construction or only on transfer of the completed unit. Builders had not paid VAT on goods element in tripartite arrangements.
Issue: What is the taxable event in a works-contract; whether goods can be deemed to be sold incrementally during construction; and what is the constitutional architecture of Art 366(29A)(b).
HELD: Goods incorporated in a building become the buyer's property by the doctrine of accretion at the point of incorporation. Each incorporation is a 'deemed sale' that can be taxed. The works-contract is a composite contract that must be unpacked into its goods and services components for tax purposes — the goods component is taxable as deemed sale; the services component as service-tax (now GST as service).
"On the principle of accretion, the goods incorporated in a building become the property of the buyer at the point of incorporation. Each such incorporation amounts to a deemed sale within the meaning of Article 366(29A)(b)."
Relevance: Foundational works-contract authority — directly informs IGST place-of-supply for works-contract services under s. 12(3) (location of immovable property) and the composite-supply treatment under s. 8 of the CGST Act.
Union of India v Mohit Minerals Pvt Ltd — (2022) 10 SCC 700 [Supreme Court — 3-Judge Bench (Constitution Bench questions)]
Brief Facts: Importers of coal on CIF basis were held liable under Notification Nos. 8/2017-Integrated Tax (Rate) and 10/2017-Integrated Tax (Rate) to pay IGST on ocean freight component under reverse charge under s. 5(3)/(4) of the IGST Act. Importers challenged the levy as ultra vires the charging section and contended that IGST had already been paid on CIF value (which included freight) at the time of import under s. 3(7) of the Customs Tariff Act.
Issue: Whether IGST could be levied separately on the ocean freight component of CIF imports when the entire CIF value (inclusive of freight) had suffered IGST under s. 3(7) of the Customs Tariff Act; and whether GST Council recommendations are binding on the Union and States.
HELD: Levy struck down. The Court held that the impugned notification offended the principle of 'composite supply' under s. 8 of the CGST Act because ocean freight in CIF imports is part of the composite supply of imported goods and cannot be artificially severed. Further, the GST Council's recommendations are recommendatory, not binding, on the Union and States — both Parliament and State legislatures have simultaneous legislative power under Article 246A.
"The recommendations of the GST Council are not binding on the Union and the States. The recommendations only have a persuasive value. To regard them as binding would disrupt fiscal federalism, where both the Union and the States are conferred equal power to legislate on GST."
Relevance: Foundational authority on the IGST charging section, the limits of reverse-charge notifications under s. 5(3)/(4), and the constitutional architecture of the GST Council. Repeatedly cited in RCM, place-of-supply, and composite-supply disputes.
Union of India v Bharti Airtel Ltd — (2022) 4 SCC 328 [Supreme Court — 2-Judge Bench]
Brief Facts: Bharti Airtel claimed it had under-reported ITC in GSTR-3B for July-Sept 2017 (the early GST months when GSTR-2A was not operational) and sought rectification of GSTR-3B for those months to correct the under-claim. Delhi HC permitted rectification; Revenue appealed to SC.
Issue: Whether GSTR-3B for past periods can be rectified to correct an under-claim of ITC where the registered person's books would support the correction but GSTN does not allow retrospective edit.
HELD: Rectification not permitted. The Court held that the GST return-filing regime is self-assessed; the registered person is duty-bound to verify entitlements at the time of filing and cannot, after the fact, claim that GSTR-2A was not available. ITC is a statutory entitlement that must be claimed within the period prescribed under s. 16(4) and not through retrospective rectification.
"GST is a self-assessment regime. The registered person bears the burden of correctly computing and reporting tax liability at the time of filing the return. The unavailability of GSTR-2A does not absolve the assessee of this duty."
Relevance: Substance-over-form authority on self-assessment, the finality of GSTR-3B, and limits on retrospective rectification — critical for place-of-supply disputes where mis-classification may be alleged years later.
Imagic Creative Pvt Ltd v Commercial Taxes Officer — (2008) 2 SCC 614 [Supreme Court — 2-Judge Bench]
Brief Facts: Advertising agency designed concepts for clients and supplied printed brochures/visiting cards. Question was whether the value of services (creative design) embedded in the printed material could be subjected to VAT as part of the sale value of the printed material.
Issue: Whether VAT and service-tax are mutually exclusive in a composite transaction; whether the service component of a composite supply can be carved out for service-tax purposes free of VAT.
HELD: Service-tax and VAT are mutually exclusive on the same transaction value. In a composite transaction, the service value must be excluded for VAT purposes (and vice versa), provided the contract clearly identifies the consideration for each. Aspects-of-supply doctrine applied.
"Service-tax and sales-tax operate in distinct constitutional fields and cannot both be levied on the same value. In a composite supply, the value attributable to services is to be excluded for VAT and vice versa."
Relevance: Pre-GST framework for composite-supply taxation. Now subsumed under s. 8 CGST Act and the place-of-supply architecture under ss. 12/13 IGST Act — the underlying principle of severing service value from goods value survives in the principal-supply analysis.
All India Federation of Tax Practitioners v Union of India — (2007) 7 SCC 527 [Supreme Court — 3-Judge Bench]
Brief Facts: The constitutional validity of the service-tax levy on chartered accountants, cost accountants, and architects was challenged on the ground that these professions had been historically regulated by State legislation and were therefore outside Union legislative competence.
Issue: Constitutional foundation of the service-tax levy — whether 'service' can be taxed by the Union under the residuary entry (Entry 97 List I) and what is the doctrinal nature of a service-tax levy.
HELD: Service-tax upheld. The Court held that service-tax is a value-added tax on the value of services rendered, traceable to Entry 97 of List I until Entry 92C was inserted by the Constitution (88th Amendment). The economic concept of value addition through services is the doctrinal basis on which service-tax — and now GST on services — rests.
"Service-tax is a value-added tax on the commercial activity of providing services. The taxable event is the rendition of service and the levy attaches to the value addition at the point of service delivery."
Relevance: Constitutional anchor for taxation of services under GST — pre-101st-Amendment doctrinal framework that informs the place-of-supply concept under s. 12 and s. 13 of the IGST Act.
4. Circulars and Notifications
Circular No. 184/16/2022-GST dated 27.12.2022 — Place of supply under s. 10(1)(b) bill-to-ship-to in transportation
Three-party transactions where supplier A delivers to recipient C on instruction of third-party B (the bill-to party) — POS is the principal place of business of B. Critical operational guidance applying CST sale-in-transit logic to GST. Also clarifies that A is not an intermediary for the C delivery — A's supply is to B (principal-to-principal); subsequent transfer from B to C is a separate (or deemed) transaction.
Circular No. 21/21/2017-GST dated 22.11.2017 — Inter-State movement of various conveyances for transportation including aircraft / vessel
Clarifies that inter-State movement of conveyances (rigs, tools, machinery) for transportation purpose by service-providers is NOT a supply of goods. Distinguishes intra-trade movement from supply event under s. 10.
Circular No. 162/18/2021-GST dated 25.09.2021 — Clarifications on POS for various supplies including pre-installation EPC
Series of clarifications on s. 10 / s. 12 application for complex supplies. For installation/assembly under s. 10(1)(d), POS is installation site irrespective of where components are sourced.
Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017 — Goods rate schedule applicable once s. 10 POS determined
Goods rate schedule — applies based on HSN classification once POS under s. 10 is determined.
Rule 138 CGST Rules dated Effective from 01.04.2018 (inter-State) — E-way bill framework — POS under s. 10 anchors destination
E-way bill required for movement of goods above Rs. 50,000. Destination on EWB matches POS under s. 10 — interception by State officers based on POS-mismatch is enforcement lever for s. 10 mis-classification.
5. Worked Examples
Example 1 — Movement-involving supply under s. 10(1)(a)
Facts: Delhi-supplier ships goods to Mumbai-recipient. Goods move from Delhi to Mumbai by road; movement terminates for delivery at Mumbai warehouse.
Computation / Steps:
Step 1. s. 10(1)(a) — POS = location at termination of movement = Mumbai.
Step 2. Supplier (Delhi) ≠ POS (Mumbai) — different States.
Step 3. Inter-State per s. 7(1); IGST attaches under s. 5(1).
Result: Inter-State Delhi-to-Mumbai; IGST at applicable rate. EWB with destination Mumbai.
Example 2 — Bill-to-ship-to under s. 10(1)(b)
Facts: Chennai-supplier A delivers goods to Bangalore-warehouse C on instruction of Mumbai-buyer B. A invoices B; B invoices C.
Computation / Steps:
Step 1. A-to-B leg: s. 10(1)(b) — POS = principal place of business of B = Mumbai.
Step 2. A (Chennai) ≠ POS (Mumbai) — inter-State per s. 7(1). IGST.
Step 3. B-to-C leg: separate supply. Per Circular 184/2022, treated as B making supply to C; POS = Bangalore (destination of movement / actual delivery).
Step 4. B (Mumbai) ≠ POS (Bangalore) — inter-State. IGST.
Result: Two inter-State supplies under bill-to-ship-to architecture. A → B (Chennai to Mumbai POS), IGST. B → C (Mumbai to Bangalore POS), IGST. Each supplier invoices independently.
Example 3 — Static supply under s. 10(1)(c) — no movement
Facts: Existing machinery installed at Mumbai factory; sold to new owner in situ (no movement).
Computation / Steps:
Step 1. s. 10(1)(c) — POS = location of goods at delivery = Mumbai.
Step 2. If supplier is also in Mumbai — intra-State per s. 8(1); CGST+SGST.
Step 3. If supplier in Delhi — inter-State per s. 7(1); IGST.
Step 4. Static-supply rule applies — no movement triggered.
Result: POS = Mumbai (location of static goods). Classification depends on supplier State. Critical to document no-movement nature for s. 10(1)(c) application.
Example 4 — Assembly / installation at site under s. 10(1)(d)
Facts: Maharashtra EPC contractor installs power plant in Gujarat. Components sourced from Tamil Nadu (steel structures), Karnataka (electrical), and Maharashtra (control systems).
Computation / Steps:
Step 1. EPC contract — composite supply of installed power plant.
Step 2. s. 10(1)(d) — POS = installation/assembly location = Gujarat.
Step 3. Supplier (Maharashtra) ≠ POS (Gujarat) — inter-State per s. 7(1).
Step 4. IGST attaches on EPC contract value.
Step 5. Component supplies from various States to Maharashtra contractor are separately analysed under s. 10(1)(a) — typically inter-State supplies into Maharashtra.
Result: EPC supply = inter-State Maharashtra-to-Gujarat IGST. Component supplies separately analysed. Critical to distinguish contract supply (installation) from component supply.
Example 5 — On-board conveyance supply under s. 10(1)(e)
Facts: Catering supplies loaded on Delhi-Bangalore train at Hyderabad station for sale during journey.
Computation / Steps:
Step 1. s. 10(1)(e) — POS = location at which goods taken on board = Hyderabad.
Step 2. Supplier (caterer) location — say Hyderabad.
Step 3. Same State — intra-State per s. 8(1); CGST+SGST.
Step 4. Even though goods consumed across multiple States during journey, POS is fixed at Hyderabad boarding.
Result: Intra-State Hyderabad supply per s. 10(1)(e). CGST+SGST. The on-board-conveyance rule fixes POS at boarding location regardless of subsequent journey. Critical for railway catering, airline retail, cruise-ship sales.
6. Practitioner Planning
7. Litigation Defence
8. Procedural Map — POS Determination for Goods (Domestic)
Step 1. Confirm domestic supply (not import / export)
s. 10 applies only to non-import/export goods; imports/exports under s. 11.
Step 2. Identify supply pattern
Movement / bill-to-ship-to / static / assembly / on-board.
Step 3. Apply correct s. 10(1) clause
(a) movement / (b) bill-to-ship-to / (c) static / (d) assembly / (e) on-board.
Step 4. For movement, identify termination point
POS = location at termination for delivery to recipient.
Step 5. For bill-to-ship-to, identify principal place of business of third party
POS = bill-to party's PoB.
Step 6. For static, identify location at delivery
POS = location of static goods at delivery.
Step 7. For assembly/installation, identify installation site
POS = installation/assembly location.
Step 8. For on-board, identify boarding location
POS = location where goods taken on board.
Step 9. Apply s. 7/s. 8 classification with POS
Same State = intra-State CGST+SGST; different State = inter-State IGST.
Step 10. Issue tax invoice under Rule 46 with POS
POS particulars required.
Step 11. Generate e-way bill matching POS
Destination on EWB = POS.
Step 12. Report in GSTR-1 POS-wise (inter-State) or State-wise (intra-State)
Tables 4 / 5A / 7.
Step 13. For mis-classification, apply s. 19 IGST refund route
Correction without time-limit penalty.
Step 14. For bill-to-ship-to, document the chain
Supplier invoice + bill-to-ship-to documentation + transport records.
Step 15. Periodic review of Circular updates
Circular 184/2022, 162/2021, 209/2024.
IGST Section 10 — POS for goods (domestic) checklist (19 items)
□ Confirmed domestic supply (not import / export)
□ Identified supply pattern (movement / bill-to-ship-to / static / assembly / on-board)
□ Applied correct s. 10(1) clause
□ For movement, identified termination point
□ For bill-to-ship-to, identified third-party principal place of business
□ For static, identified location at delivery
□ For assembly / installation, identified installation site
□ For on-board, identified boarding location
□ Applied s. 7 / s. 8 inter-State / intra-State classification
□ Issued tax invoice with POS particulars (Rule 46)
□ Generated e-way bill matching POS
□ Reported in GSTR-1 POS-wise / State-wise correctly
□ For mis-classification, considered s. 19 IGST refund route
□ For bill-to-ship-to, documented the chain (Circular 184/2022)
□ For EPC / installation, exhibited installation completion certificate
□ For on-board, exhibited boarding location records
□ For static supplies, documented no-movement nature
□ For composite supplies, applied principal-supply test + POS
□ Reviewed Circulars 184/2022, 162/2021, 209/2024
CROSS-REFERENCES