Guide
Place of supply
Place of supply decides whether an Indian GST invoice charges CGST and SGST or IGST. How it works for professional services.
Under Indian GST the place of supply decides which tax applies. When the supplier’s location and the place of supply are in the same state, the supply is intra-state and carries CGST and SGST. When they are in different states, it is inter-state and carries IGST.
For most services supplied to a registered business in India, the place of supply is the recipient’s location (section 12 of the IGST Act). For a recipient outside India, section 13 applies: the general rule is again the recipient’s location, with exceptions such as services tied to immovable property, whose place of supply is where the property is.
In ReliTime
ReliTime derives the treatment from both parties’ registered locations rather than from a choice made on a form, and asks for a client’s country instead of assuming India.
This is a guide, not tax advice. Check how it applies to your own supplies with your adviser.
Related
Questions people ask
What if the client has no GST registration?
For most services to an unregistered recipient in India, the place of supply is the recipient’s address on record, or the supplier’s location if there is none.
Can CGST, SGST and IGST all appear on one invoice?
No. A supply is either intra-state, with CGST and SGST, or inter-state, with IGST.
See it on your own kind of work
We set ReliTime up with a walkthrough rather than a sign-up form. We will take you through a working organisation, from a week of timesheets through approvals and work in progress to a GST invoice, answer your questions as we go, and set up yours.
Or write to hello@relitime.com.