What is place of supply under GST?
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Short answer
Place of supply is the location GST law treats a supply as made in.12 Where the supplier or recipient is outside India, section 13(2) of the IGST Act makes it "the location of the recipient of services".1 Sections 13(3) to 13(13) set special rules.2 A service is an export only if its place of supply is outside India.3
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Not an abbreviation: the location a supply is treated as made in | IGST Act, 2017, section 13 for cross-border services1 | GST-registered exporters deciding whether an invoice is an export | Testing export status under section 2(6) and choosing between LUT and GST3 | Export of services, LUT, intermediary services, zero-rated supply |
Two invoices can look identical, a $3,000 fee to a client in Singapore, and still be taxed differently. One is an export with no GST; the other carries GST as if the client were in Mumbai. The difference is usually the place of supply.23
What does place of supply mean in simple words?
Place of supply is where GST law treats a service as delivered, whatever the location of the supplier's desk. When the supplier or the recipient is outside India, section 13 of the Integrated Goods and Services Tax (IGST) Act decides the place of supply.12
- Default rule: section 13(2) makes it the location of the recipient.1
- Special rules: sections 13(3) to 13(13) can move it to where the work happens.2
For example, a content writer, a data analyst or a virtual assistant serving a client abroad usually falls under the default rule.2
Why does place of supply matter for Indian exporters and freelancers?
Place of supply matters because it decides whether a service to a foreign client can be a zero-rated export.3
- GST: section 2(6) of the IGST Act lists five conditions for an export of services, and one is that the place of supply is outside India.3
- Domestic treatment: if the place of supply is in India, the service is not an export, whoever the client is.3
- LUT: an LUT only helps when the supply is an export.3
The place of supply is therefore the first test on any foreign invoice.3
How does place of supply work for cross-border services?
Place of supply works by starting from the recipient's location and then checking whether a special rule applies.12
| Service | Place of supply | Section | Best for |
|---|---|---|---|
| Most remote services | Recipient's location | 13(2) | Writers, analysts, developers serving clients abroad |
| Services on goods the recipient makes physically available to you | Where performed (or where goods are, if done remotely) | 13(3)(a) | Repair or testing work |
| Services needing the recipient's physical presence, such as in-person coaching | Where performed | 13(3)(b) | Trainers and coaches |
| Services directly related to immovable property, including architects and interior decorators | Where the property is | 13(4) | Architects and interior designers |
| Admission to or organisation of events | Where the event is held | 13(5) | Event organisers |
| Online information and database access or retrieval services | Recipient's location | 13(12) | Online database providers |
All rows are from section 13 of the IGST Act.12 If a service under sections 13(3) to 13(5) is supplied at more than one location including India, section 13(6) makes the place of supply India.2
How do you check the place of supply on an export invoice?
You check the place of supply by identifying the service type, then the client's location, and keeping records of both.2
- Service type: see whether a special rule in sections 13(3) to 13(13) covers it.2
- Location: confirm where the recipient is located.1
- Records: keep the client's address, contract and billing details on file.2
Worked examples by type of service are in place of supply for export of services.
What is the difference between place of supply and location of the supplier?
The location of the supplier is where you are, while the place of supply is where the law treats the service as supplied.12
| Concept | Meaning | Best for |
|---|---|---|
| Location of the supplier | Where the exporter is based | Fallback when the recipient's location is not available (proviso to 13(2)) |
| Place of supply | Where the service is treated as supplied under section 13 | Deciding whether a service is an export |
Under the proviso, where the recipient's location is not available in the ordinary course of business, the place of supply is the supplier's location.2
What do people get wrong about place of supply?
People often assume a foreign client always means an export. Services tied to physical presence, property in India or events in India can have an Indian place of supply.2
- Intermediaries: section 13(8)(b), which made the place of supply for intermediary services the supplier's location, was omitted by section 157 of the Finance Act, 2026 with effect from 30 March 2026.4
- Mixed locations: section 13(6) can pull a supply partly performed in India into India.2
Borderline cases depend on the contract, so confirm with a chartered accountant.
Which terms are related to place of supply?
These terms work with place of supply to decide export status:
- Export of services: the five-condition test in section 2(6).3
- LUT: the undertaking for exporting without IGST.
- Intermediary services: services whose special rule was omitted in 2026.4
- Zero-rated supply: the GST treatment of exports.
- Export of services under GST and FEMA: how the two laws define an export.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
- [2]IGST Act, 2017 (as amended), section 13, Maharashtra GST Department copy
- [3]CBIC: IGST Act, 2017, section 2(6) (export of services)
- [4]The Finance Act, 2026 (No. 4 of 2026), section 157, Gazette of India, 30 March 2026
Frequently asked questions
What is the place of supply for a remote service to a foreign client?+
The place of supply for a remote service to a foreign client is usually the client's location, under the default rule in section 13(2) of the IGST Act. That changes only if one of the special rules in sections 13(3) to 13(13) applies to the particular service supplied.1
What if I do not know where my client is located for place of supply?+
The proviso to section 13(2) of the IGST Act says that where the recipient's location is not available in the ordinary course of business, the place of supply is the supplier's location, which would be India. Keep the client's address, contract and billing details on file.2
Is the place of supply for intermediary services still India?+
No longer by a special rule. Section 13(8)(b) of the IGST Act, which made the place of supply for intermediary services the supplier's location, was omitted by section 157 of the Finance Act, 2026 from 30 March 2026, so the default rule now applies.4
Can on-site work abroad have an Indian place of supply?+
Yes. Section 13(3)(b) of the IGST Act makes the place of supply the place of performance for services needing the recipient's physical presence. If part of such a service is performed in India, section 13(6) can make the place of supply India for the whole supply.2
What is the place of supply for online information and database services?+
For online information and database access or retrieval services, section 13(12) of the IGST Act makes the place of supply the recipient's location. A data provider or online database supplier serving a foreign client therefore looks to where that client is located.2
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
How is the place of supply decided when you export services from India?
How IGST section 13 decides the place of supply when your client is abroad: the recipient-location rule, the exceptions that keep it in India, and 2026 changes.
GSTWhat counts as export of services under GST and under FEMA?
GST and FEMA define export of services differently. Compare IGST section 2(6) with FEMA section 2(l), and see when a service counts under one law but not the other.
GSTAre intermediary services exports under GST after the 2026 change?
Who is an intermediary under IGST Act section 2(13), why agents could not claim export status, and how the Finance Act 2026 changed this from 30 March 2026.
GlossaryWhat is an LUT (Letter of Undertaking)?
An LUT is the undertaking in FORM GST RFD-11 that lets a registered exporter bill foreign clients without IGST. What it means, who files it, and how long it lasts.
GlossaryWhat is export of services?
Export of services under section 2(6) of the IGST Act needs five conditions, including a client abroad and payment in foreign exchange. What it means in 2026.