What Is Place of Supply?

Place of supply decides where a supply is treated as taking place for GST. The answer is not always the place where work is done. For services where the supplier or the recipient is outside India, section 13 sets the rules. The general rule is that the place of supply is the location of the recipient of the services. Some services have their own rules in the later sub-sections. For example, services tied to goods or to physical presence may follow where the service is performed. When the place of supply is outside India, one condition of the export of services definition is met. When the place of supply is in India, the supply is not an export, even if the client is a foreign company.

For example, a developer in Hyderabad builds software for a client located in Germany. No special rule applies, so the place of supply is Germany, the client's location. That satisfies the place of supply condition for export of services.

• GST: Section 2(6)(iii) requires the place of supply to be outside India for an export of services. Without it, the supply is not zero-rated as an export.
• Default rule: Under section 13(2), the place of supply is the location of the recipient. If the recipient's location is not available in the ordinary course of business, it is the supplier's location.
• Special services: Section 13(3) and later sub-sections set separate rules for some services. Check them if your work involves goods, events or physical presence.
• Documents: A clear client address and contract help show the recipient's location. Keep them with the invoice.

To find the place of supply of a service to an overseas client, start with the default rule and then check whether a special rule applies.

1. Identify the recipient of the service and where it is located.
2. Check whether your service is listed in the special rules of section 13(3) onward.
3. If no special rule applies, the place of supply is the recipient's location under section 13(2).
4. If the recipient's location is not available in the ordinary course of business, use the supplier's location.
5. If the place of supply is outside India, move on to the other export of services conditions.

Identify the recipient's location and test whether a special rule applies. A worked example with hypothetical facts shows the steps.

1. Say a translator in Kochi bills an agency in Canada for a document translation.
2. Look at section 13(3) onward to see whether translation of this kind has a special rule. If none applies, use the default.
3. Default rule: place of supply is the recipient's location, Canada.
4. Because Canada is outside India, the place of supply condition is met.
5. Check the remaining conditions, including payment in foreign exchange.
6. If the service is tied to goods or physical presence, read the matching sub-section before concluding.

• Where work is done: Many freelancers assume the place of supply is where they sit. The default rule looks at the recipient.
• Foreign company: A foreign client does not alone fix the place of supply. The recipient's location and any special rule decide it.
• Payment location: Place of supply is separate from where payment is received. Payment is a different condition of the export definition.
• All services alike: Section 13 has separate rules for some services, so do not assume the default applies to every case.

• Export of services: A supply that meets five conditions under IGST Act section 2(6).
• Zero-rated supply: A supply on which no net GST is borne.
• LUT: An undertaking to supply exports without paying IGST.
• IGST refund: A refund of IGST paid on zero-rated supplies.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. IGST Act, 2017, Section 13, Section 13(1), (2) and proviso (checked 9 Oct 2026)
2. IGST Act, 2017, Section 2, Section 2(6)(iii) (checked 9 Oct 2026)