Section 12 fixes the place of supply of services when both supplier and recipient are in India. It starts with a general rule built on the recipient's registration, then sets out special rules for services whose natural place is a property, an event, a journey or a connection.
Key points
- Under section 12(2) of the IGST Act, 2017 the place of supply of a service to a registered person is that person's location; to an unregistered person, the recipient's address on record, failing which the supplier's location.
- Services directly in relation to immovable property, hotel accommodation and event venues have their place of supply where the property is located (section 12(3)).
- The place of supply of transport of goods to a registered person is that person's location; to an unregistered person, where the goods are handed over for transport (section 12(8)). The destination rule for exports in the former proviso was omitted from 01.10.2023.
- Banking and financial services are supplied at the recipient's location on the supplier's records (section 12(12)).
The provisions
12(1)–(2)Scope and the general rule
Statutory text
(1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India.
(2) The place of supply of services, except the services specified in sub-sections (3) to (14),-
(a) made to a registered person shall be the location of such person;
(b) made to any person other than a registered person shall be,-
( i ) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.
12(3)Immovable property, hotels and event venues
Statutory text
(3) The place of supply of services,-
(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or
(c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c),
shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:
Provided that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.
Explanation .-Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
What it means
Services directly in relation to immovable property (including those of architects, engineers, surveyors and estate agents, and construction and renting), lodging in hotels, guest houses and houseboats, accommodation for marriages, functions and business events, and services ancillary to these: the place of supply is where the property or vessel is, or is intended to be, located — whoever the recipient is.
If the property is outside India, the proviso makes the place of supply the recipient's location. If it lies in more than one State or Union territory, the Explanation treats the supply as made in each, in proportion to the value attributable to each under the contract or, failing that, on a prescribed basis.
Because the place of supply is the property's State, a business booking a hotel in another State is charged CGST and SGST of that State, which it ordinarily cannot credit against its own liability.
12(4)–(7)Restaurants, training, admission and events
Statutory text
(4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.
(5) The place of supply of services in relation to training and performance appraisal to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the location where the service are actually performed.
(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.
(7) The place of supply of services provided by way of,-
(a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or
(b) services ancillary to organisation of any of the events or services referred to in clause (a),or assigning of sponsorship to such events,-
(i) to a registered person, shall be the location of such person;
(ii) to a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient.
Explanation . -Where the event is held in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
What it means
- (4) Restaurant and catering, personal grooming, fitness, beauty treatment and health services, including cosmetic and plastic surgery — where the services are actually performed.
- (5) Training and performance appraisal — to a registered person, its location; otherwise where actually performed.
- (6) Admission to a cultural, artistic, sporting, scientific, educational or entertainment event or amusement park — where the event is held or the park is located.
- (7) Organising such an event, including conferences, fairs and exhibitions, ancillary services and sponsorship — to a registered person, its location; otherwise where the event is held, or the recipient's location if the event is outside India. A multi-State event charged for as a whole is apportioned among the States.
12(8)–(10)Transport of goods and passengers; services on board
Statutory text
(8) 1[* * * *]
(9) The place of supply of passenger transportation service to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:
Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in accordance with the provisions of sub-section (2).
Explanation .-For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.
(10) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.
1. Omitted by s. 161 of The Finance (No. 8) Act, 2023 (No. 08 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023.
What it means
- (8) Transport of goods, including by mail or courier — to a registered person, its location; to an unregistered person, where the goods are handed over for transport. The former proviso, which made the destination the place of supply for goods transported outside India, was omitted from 01.10.2023, so a domestic transporter carrying goods for export now charges tax on the same basis as any other transport.
- (9) Passenger transport — to a registered person, its location; otherwise where the passenger embarks for a continuous journey. A return journey is a separate journey. Where a ticket is for future use without a known point of embarkation, the general rule in sub-section (2) applies.
- (10) Services on board a conveyance — the first scheduled point of departure of the conveyance for the journey.
The CBIC text shows the whole of sub-section (8) as omitted. Only its proviso was omitted (Finance Act, 2023, s. 161, from 01.10.2023). Sub-section (8) still reads: "The place of supply of services by way of transportation of goods, including by mail or courier to,— (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation."
12(11)–(14)Telecom, banking, insurance and Government advertising
Statutory text
(11) The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,-
(a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services;
(b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services;
(c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,-
(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or
(ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold;
(d) in other cases, be the address of the recipient as per the records of the supplier of services and where such address is not available, the place of supply shall be location of the supplier of services:
Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services:
Provided further that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.
Explanation .- Where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
(12) The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services:
Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.
(13) The place of supply of insurance services shall,-
(a) to a registered person, be the location of such person;
(b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.
(14) The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement shall be taken as being in each of such States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
What it means
- (11) Telecommunication — a fixed line, leased circuit or dish: where it is installed; post-paid mobile: the billing address; pre-paid through a distributor: the distributor's address, or to the final subscriber where the recharge is sold; pre-paid recharged online: the recipient's address on the supplier's records.
- (12) Banking and financial services, including stock broking — the recipient's location on the supplier's records, or the supplier's location if none is recorded.
- (13) Insurance — to a registered person, its location; otherwise the recipient's location on the supplier's records.
- (14) Advertising for the Government, a statutory body or a local authority meant for particular States — each of those States, in proportion to the amount attributable to each.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the general place-of-supply rule for services within India?
- Section 12(2) of the IGST Act: a registered recipient's location; for an unregistered recipient, its address on record, failing which the supplier's location.
- What is the place of supply for hotel accommodation?
- Where the hotel is located (section 12(3)), so the hotel charges CGST and SGST of its own State even to a guest from another State.
- What is the place of supply for goods transport services within India?
- To a registered person, its location; to an unregistered person, where the goods are handed over for transport (section 12(8)). Since 01.10.2023 this applies even when the goods are transported to a place outside India.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Section 12 applies only when the supplier and the recipient are both located in India; if either is outside, section 13 applies.
The general rule covers every service not listed in sub-sections (3) to (14). To a registered person, the place of supply is that person's location — which lets a business recipient take credit in its own State. To an unregistered person, it is the recipient's location where an address is on record, and otherwise the supplier's location.