Place of Supply
Also searched as: place of supply meaning · place of supply GTA · place of supply transport service · IGST or CGST SGST transport
Place of supply is the location treated as the place where a supply of goods or services takes place under GST. It decides whether a supply is intra-state or inter-state and so whether CGST and SGST or IGST is charged. For a freight invoice to a registered party it is generally the location of that party.
Detailed Explanation & Statutory Rules
The comparison is simple: the supplier's state versus the place of supply. If they are the same state, CGST and SGST are charged; if they differ, IGST is charged. For transport, confusion arises because the goods may travel between many states: the tax depends on the place of supply of the transport service, not on how many states the truck crosses. For services to a registered person the place of supply is generally that person's location; the rules differ where the recipient is unregistered, so check the facts and your CA before invoicing in unusual cases. Bilty decides CGST and SGST versus IGST by comparing the supplier's state with the place of supply, and shows the split on the invoice. This is general information, not tax advice.
Practical Indian Freight Example
"A Rajkot (Gujarat) transporter bills a Delhi company (registered) for a Rajkot to Mumbai load. The company's location is Delhi, so the place of supply is Delhi, different from Gujarat: the invoice shows IGST, even though the truck did not go to Delhi. Check your own case with your CA."
Key Questions & Answers
What is place of supply in GST for transport?
For a registered recipient it is generally the recipient's location. It decides IGST or CGST+SGST. Rules differ for unregistered recipients, so check with your CA.
Does IGST depend on how many states the truck crosses?
No. It depends on the supplier's state and the place of supply, not the route.
Place of Supply in Hinglish (Hindi in English letters)
Place of supply kya hota hai?
Place of supply wo jagah hai jise GST me supply ki jagah maana jata hai. Isse tay hota hai ki IGST lagega ya CGST+SGST.
Kya truck kitne state paar karta hai us se IGST tay hota hai?
Nahi. Supplier ka state aur place of supply dekhte hain, route nahi.
Free tools and features for this
Other Useful Transport Terms:
Automate Your Freight Desk with Bilty
Create compliant bilties, track party ledgers, and manage fleet expenses.