Section 8 is the counterpart of section 7: a supply is intra-State — taxed as CGST plus SGST/UTGST — when supplier and place of supply are in the same State or Union territory. It then carves out supplies that are never intra-State, and its Explanations decide when two establishments of one business are "distinct persons".
Key points
- Under section 8 of the IGST Act, 2017 a supply is intra-State when the location of the supplier and the place of supply are in the same State or the same Union territory.
- Supplies to or by an SEZ developer or unit, goods imported until they cross the customs frontiers, and supplies to international tourists under section 15 are never intra-State supplies.
- Under Explanation 1 to section 8, an establishment in India and one outside India, or establishments in different States or UTs, are establishments of distinct persons; "business verticals" were dropped from the Explanation from 01.02.2019.
- A person with a branch, agency or representational office in a territory has an establishment there (Explanation 2).
The provisions
8(1)Intra-State supply of goods
Statutory text
(1) Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply:
Provided that the following supply of goods shall not be treated as intra-State supply namely:-
(i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
(ii) goods imported into the territory of India till they cross the customs frontiers of India; or
(iii) supplies made to a tourist referred to in section 15.
8(2) and ExplanationsIntra-State supply of services; distinct persons
Statutory text
(2) Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply:
Provided that the intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit.
Explanation 1.-For the purposes of this Act, where a person has,-
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment 1[*****] registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.
Explanation 2. - A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.
1. Omitted "being a business vertical" by s. 4 of the Integrated Goods and Services Tax (Amendment) Act, 2018 (No. 32 of 2018) - Brought into force w.e.f. 01st February, 2019.
What it means
The same test for services, with the place of supply under section 12. Supplies of services to or by an SEZ developer or unit are excluded by the proviso.
Explanation 1 treats establishments of one person as distinct persons in three cases: one in India and one outside; one in a State or UT and one outside it; and one in a State or UT and another registered within that same State or UT. Before 01.02.2019 the third case was limited to establishments registered as a separate "business vertical"; those words were omitted by the IGST (Amendment) Act, 2018.
Explanation 2 fixes what an "establishment" is: carrying on business through a branch, an agency or a representational office in a territory is having an establishment there.
The consequences run through the Act. Supplies between distinct persons are supplies even without consideration (Schedule I to the CGST Act), so a head office in one State supplying services to its branch in another must charge IGST — valued under Rule 28 of the CGST Rules. And condition (v) of export of services in section 2(6) fails where supplier and recipient are merely establishments of a distinct person.
- Circular 199/11/2023-GST — cross-charge between distinct persons; where the recipient branch is entitled to full credit, the invoice value (even nil) is deemed open market value
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
- When is a supply intra-State under GST?
- Under section 8 of the IGST Act, when the location of the supplier and the place of supply are in the same State or Union territory — except supplies to or by an SEZ, goods imported before crossing the customs frontiers, and supplies to international tourists.
- Are two GST registrations of the same company distinct persons?
- Yes. Explanation 1 to section 8 IGST (and section 25(4) CGST) treats establishments in different States or UTs, and separately registered establishments in the same State, as distinct persons.
- Must a head office charge GST on services to its branches in other States?
- Supplies between distinct persons are taxable even without consideration. Under Circular 199/11/2023-GST, where the branch is entitled to full credit, the value shown on the invoice — even nil — is accepted as the open market value.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Supplier and place of supply (under section 10) in the same State or Union territory: the supply is intra-State, and CGST with SGST or UTGST is charged instead of IGST.