Place of supply — goods
For goods the rule follows the physical movement rather than the billing address, which is the distinction most often missed.
- Where movement is involved — the place where movement terminates for delivery
- Where there is no movement — the location of the goods at the time of delivery
- Bill-to-ship-to — the principal place of business of the party who directed the supply
- Imports — the importer's location; exports — outside India
Place of supply — services
The default is the recipient's location where they are registered, and the supplier's location where they are not. A set of specific services override the default: immovable property is taxed where the property is, restaurant and personal grooming where performed, admission to events where the event is held, and transport of goods where the goods are handed over.
Time of supply
For goods, it is the earlier of the invoice date (or the last date the invoice should have been issued) and the date payment is entered in your books or hits your bank. For services the logic mirrors this. Under reverse charge the test shifts to the date of payment or 30 to 60 days from the supplier's invoice, whichever is earlier.
Value of supply
Value is the price actually paid where the parties are unrelated and price is the sole consideration. It includes incidental expenses, packing, commission, and any tax other than GST. Discounts reduce value only if they were known at or before the time of supply, or are linked to specific invoices under a pre-agreed arrangement — post-sale discounts decided later cannot be deducted.
Common questions
My customer is in another state but collects goods from my shop. Which tax applies?+
Where the customer takes delivery at your premises and no movement is arranged by you, the place of supply is your state, so CGST and SGST apply — even though the customer's GSTIN is from elsewhere.
What is bill-to-ship-to?+
Where A bills B but ships to C on B's instruction, the place of supply for A's invoice is B's location, not C's. It is treated as two supplies, and getting it wrong reverses the CGST/SGST versus IGST split on both.
Do advances attract GST?+
For services, yes — tax is due on receipt of an advance. For goods, tax is payable only on invoice, so advances against goods do not trigger liability.