Interstate Supply & Place of Supply

Place of supply of goods other than supply of goods imported into, or exported from India

IGST s.10, IGST Act

Chapter chapterv Text as on 2026-09-05 Source CBIC

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In one line

Place of supply of domestic goods. Where the supply involves movement it is where the movement ends for delivery to the recipient; on a bill-to-ship-to it is the third party’s principal place of business; where there is no movement it is where the goods sit at delivery; for assembly at site it is the site; and on board a conveyance it is where the goods were taken on board.

What this means in practice

The parts that actually decide cases — the things a practitioner checks first.

1

Bill-to-ship-to under 10(1)(b): the place of supply is the third person’s location, not where the goods physically go – the deemed-receipt Explanation to section 16(2)(b) of the CGST Act completes the credit chain.

2

For a supply to an unregistered person, the place of supply is the address on record; where none exists, the supplier’s location (amended 01-10-2023 for e-commerce supplies to unregistered persons).

3

Assembly or installation at site fixes the place of supply at the site – which is what forces a contractor to register in that State when he has a fixed establishment there.

Questions people actually ask

Real questions we get on this provision, answered straight.

We buy in Maharashtra and ask the seller to deliver to our customer in Gujarat.+

Under section 10(1)(b) the place of supply of the seller’s supply to you is YOUR location, so he charges IGST if he is outside Maharashtra or CGST plus SGST if within it, and you make a second supply to your customer in Gujarat. You get credit on the first leg through the deemed-receipt Explanation, even though you never handled the goods.

The exact words of the law

2,201 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

Read the full provision+
section 10 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; 1 [(ca) where the supply of goods is made to a person other than a registered person, the place of supply shall, notwithstanding anything contrary contained in clause
(a) or clause (c), be the location as per the address of the said person recorded in the invoice issued in respect of the said supply and the location of the supplier where the address of the said person is not recorded in the invoice. Explanation.—For the purposes of this clause, recording of the name of the State of the said person in the invoice shall be deemed to be the recording of the address of the said person;]
(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.

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

date not stated · Insertedbys

Inserted by s. 4 of the Integrated Goods and Services Tax (Amendment) Act, 2023 (No. 31 of 2023) – Brought into force w.e.f. yet to be notified.

Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

place of supply goodsbill to ship to gst

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