Guides · GST
Place of supply for services
The place of supply for services fixes where a service is treated as supplied for GST. Because services do not move physically, the rules work differently from goods — and they carry more exceptions.
The default rule and its exceptions
As a general rule, where the recipient is registered, the place of supply of a service is the recipient's location; where the recipient is not registered, it is the recipient's address on record, or otherwise the supplier's location. On top of this default sit many specific rules for particular services.
Services tied to a place — such as those connected to immovable property, or an event, or transport — often follow that place instead of the recipient's location. Because the exceptions are numerous, the specific service type has to be checked.
Why it sets the tax
As with goods, the place of supply decides whether the service is intra-state or inter-state, and so whether CGST and SGST or IGST applies. A service billed across state lines is treated differently from one delivered within the same state.
Getting this right matters for the recipient too, because the tax head affects how they claim input tax credit.
How Lekha records service invoices
Lekha records the tax invoice with its place of supply and tax split, so a service billed within the state and one billed across state lines are each recorded correctly.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is the default place of supply for services?
- Generally the recipient's location where the recipient is registered; where not registered, the recipient's address on record, or otherwise the supplier's location, subject to many specific exceptions.
- Why are there so many exceptions for services?
- Because services attach to different things — property, events, transport, and more — the law sets specific place-of-supply rules for those cases rather than one blanket rule.
- How does the place of supply affect the tax on a service?
- It decides whether the service is intra-state or inter-state, which sets whether CGST and SGST or IGST is charged.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.