Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 12, verbatim (show)
section 2
Section 12. Place of supply of services where location of supplier and recipient is in India.-
(1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India.
(2) The place of supply of services, except the services specified in sub-sections (3) to (14),-
(a) made to a registered person shall be the location of such person;
(b) made to any person other than a registered person shall be,-
( i ) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.
(3) The place of supply of services,-
(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or
(c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c),
shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:
Provided that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.
Explanation .-Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
(4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.
(5) The place of supply of services in relation to training and performance appraisal to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the location where the service are actually performed.
(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.
(7) The place of supply of services provided by way of,-
(a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or
(b) services ancillary to organisation of any of the events or services referred to in clause (a),or assigning of sponsorship to such events,-
(i) to a registered person, shall be the location of such person;
(ii) to a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient.
Explanation . -Where the event is held in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
(8) 1[* * * *]
(9) The place of supply of passenger transportation service to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:
Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in accordance with the provisions of sub-section (2).
Explanation .-For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.
(10) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.
(11) The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,-
(a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services;
(b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services;
(c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,-
(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or
(ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold;
(d) in other cases, be the address of the recipient as per the records of the supplier of services and where such address is not available, the place of supply shall be location of the supplier of services:
Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services:
Provided further that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.
Explanation .- Where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
(12) The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services:
Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.
(13) The place of supply of insurance services shall,-
(a) to a registered person, be the location of such person;
(b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.
(14) The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement shall be taken as being in each of such States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
1. Omitted by s. 161 of The Finance (No. 8) Act, 2023 (No. 08 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023.
12(1)Domestic scope
shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India.Section 12(1)
Both locations must be in India. That condition selects the domestic place-of-supply framework.
Questions to answer on the file3 questions
12(2)(a) and (b)Default rule
made to a registered person shall be the location of such personSection 12(2)(a) and (b)
The default excludes services specified in sub-sections (3) to (14). For other recipients, use their location where an address exists, otherwise supplier location.
12(3)(a) to (d) and provisoProperty and lodging
shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be locatedSection 12(3)(a) to (d) and proviso
The list covers direct property services, lodging, specified functions and ancillary services. Outside-India property, boat or vessel location instead gives recipient location, and multi-State value follows contractual or prescribed proportions. The law does not settle the required direct property connection or ancillary nexus.
12(4)Actual performance
shall be the location where the services are actually performed.Section 12(4)
Restaurant and catering, grooming, fitness, beauty and health services including cosmetic or plastic surgery use actual performance location. Sub-section (2) yields to this special rule.
Questions to answer on the file4 questions
12(5)Training and appraisal
a registered person, shall be the location of such personSection 12(5)
Registered-recipient location governs training and performance appraisal. For an unregistered recipient, actual performance location governs.
Questions to answer on the file7 questions
12(6)Admission
shall be the place where the event is actually held or where the park or such other place is located.Section 12(6)
Admission to the listed events, amusement parks or other places uses that event or place location, including ancillary admission services. The law does not settle the ancillary connection distinct from event organisation.
Questions to answer on the file5 questions
12(7) and ExplanationEvent organisation and sponsorship
to a registered person, shall be the location of such personSection 12(7) and Explanation
For others, use event location, or recipient location for an overseas event. Multi-State events charged together use contractual values or the prescribed basis. The law does not settle the ancillary-organisation connection.
Questions to answer on the fileEvent organisation and sponsorship10 questions
Questions to answer on the fileEvent allocation across States13 questions
12(8)Transportation of goods, including by mail or courier
a person other than a registered person, shall be the location at which such goods are handed over for their transportationSection 12(8)
For transportation of goods, including by mail or courier, the place of supply is the location of a registered recipient, and for any other recipient the location where the goods are handed over for transportation. Section 161 of the Finance Act, 2023 omitted only the proviso to sub-section (8), from 1 October 2023; the CBIC text marks the whole sub-section as omitted, but clauses (a) and (b) are in force.
Questions to answer on the file7 questions
12(9) and provisoPassenger journeys
shall be the place where the passenger embarks on the conveyance for a continuous journeySection 12(9) and proviso
That embarkation rule applies to recipients other than registered persons; registered persons use their location. Unknown future embarkation returns to sub-section (2). Return travel is separate even where passage rights are issued together.
Questions to answer on the file12 questions
12(10)On-board services
shall be the location of the first scheduled point of departure of that conveyance for the journey.Section 12(10)
Vessels, aircraft, trains and motor vehicles fall within this provision. The first scheduled departure supplies the location for that journey.
Questions to answer on the file4 questions
12(11) and provisosTelecommunications
the place of supply shall be location of the supplier of servicesSection 12(11) and provisos
Fixed services use installation; post-paid services use billing address held by the supplier. Prepaid routes use the stated agent or distributor address or final-subscriber payment or voucher location, while other cases use recipient address or supplier fallback. Electronic prepaid payment uses supplier-held recipient location, and multi-State leased circuits use contractual or prescribed proportions. The law does not settle the first proviso's reach across specific rules, its electronic-prepaid interaction, or overlapping agent and final-subscriber descriptions.
Questions to answer on the file10 questions
12(12)Financial services
the place of supply shall be the location of the supplier of services.Section 12(12)
The main rule uses recipient location held by the supplier for banking, financial and stock-broking services. The quoted fallback applies if that location is unavailable.
Questions to answer on the file6 questions
12(13)Insurance
to a registered person, be the location of such personSection 12(13)
Registered-recipient location governs. Other recipients use their location held by the supplier.
Questions to answer on the file7 questions
12(14)Public advertising
shall be taken as being in each of such States or Union territoriesSection 12(14)
The service must be for the specified Governments, statutory bodies or local authorities and the contract-identified jurisdictions. Dissemination proportions follow the agreement or prescribed basis.
Questions to answer on the file10 questions
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Default rule 12(2)
Questions to answer on the file8 questions
Immovable property, lodging and ancillary services 12(3)
Questions to answer on the file9 questions
Property in more than one State 12(3) Explanation
Questions to answer on the file9 questions
Fixed telecom installations 12(11)(a)
Questions to answer on the file7 questions
Post-paid mobile and internet 12(11)(b)
Questions to answer on the file7 questions
Prepaid telecom and electronic recharge 12(11)(c)
Questions to answer on the file13 questions
Other telecom cases 12(11)(d)
Questions to answer on the file6 questions
Frequently asked questions
Where does an overseas property use this domestic-scope rule?
Sub-section (3) uses recipient location where the property, boat or vessel is outside India. Both supplier and recipient must still meet section 12's domestic scope.
Section 12(1) and 12(3)
Is return passenger travel part of the outward journey?
No. The Explanation treats it as a separate journey even where passage rights are issued together.
Section 12(9)
What if the supplier lacks the financial-service recipient location?
The supplier location applies under the proviso. The main rule otherwise uses the recipient location held by the supplier.
Section 12(12)
Amendment history
The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Effective from |
|---|---|
| 1 | 01.10.2023, as the source footnote and India Code amendment note state |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 2 of the CGST Act, 2017 | 12(2), 12(5), 12(7)–(9), 12(13) defined by Section 2 of the CGST Act, 2017 clauses (3), (56), (93), (94), (102), via IGST 2(24) | 12(2)(a) "a registered person"; 12(2)(b)(i) "the address on record exists"; 12(1) "services" |
| Section 16 of the CGST Act, 2017, Section 17 of the CGST Act, 2017, Section 49 of the CGST Act, 2017 | Section 16 of the CGST Act, 2017, Section 17 of the CGST Act, 2017, Section 49 of the CGST Act, 2017 requires separately determined nature/head/credit evidence, not an S12 credit verdict | 12(1) "determine the place of supply of services"; no credit entitlement or utilisation words occur in section 12 |
| Section 16 of the CGST Act, 2017, Section 17 of the CGST Act, 2017, Section 49 of the CGST Act, 2017 | 12(3)(b) hotel place-of-supply evidence read with Section 16 of the CGST Act, 2017; Section 17 of the CGST Act, 2017; Section 49 of the CGST Act, 2017 | 12(3)(b) "lodging accommodation by a hotel"; place evidence is separate from credit eligibility and utilisation |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (7)
| Number | Date | Subject |
|---|---|---|
| Circular No. 242/36/2024-GST | 31 December 2024 | Clarification on place of supply of Online Services supplied by the suppliers of services to unregistered recipients |
| Circular No. 203/15/2023-GST | 27 October 2023 | Clarification regarding determination of place of supply in various cases |
| Circular No. 184/16/2022-GST | 27 December 2022 | Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017 |
| Circular No. 103/22/2019-GST | 28 June 2019 | Clarification regarding determination of place of supply in certain cases-reg. |
| Circular No. 48/22/2018-GST | 14 June 2018 | Circulars clarifying miscellaneous issues related to SEZ and refund of unutilized ITC for job workers. |
| Circular No. 3/01/2018-IGST | 25 May 2018 | Applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse-reg. rescinded by a later instrument |
| Circular No. 2/01/2017-IGST | 27 September 2017 | Clarification on supply of satellite launch services by ANTRIX Corporation Ltd. |
Notifications (2)
| Number | Date | Subject |
|---|---|---|
| Notification No. 04/2018-Integrated Tax | 31 December 2018 | Seeks to amend the IGST Rules, 2017 so as to notify the rules for determination of place of supply in case of inter-State supply under sections 10(2), 12(3), 12(7), 12(11) and 13(7) of the IGST Act, 2017. made under this section |
| Notification No. 12/2017-Integrated Tax | 15 November 2017 | Apportionment of IGST with respect to advertisement services under section 12 (14) of the IGST Act, 2017. made under this section |
Unsettled questions
The words of section 12 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- What connection makes a service directly in relation to immovable property under IGST section 12(3)(a) or section 13(4), applying the examples and context of the provision under examination?
- What nexus makes a service ancillary to the property, lodging or function services in section 12(3)(a)–(c)?
- What connection makes a service ancillary to admission under section 12(6), distinct from organisation of an event under section 12(7)?
- What connection makes a service ancillary to organisation of events under section 12(7)(b), rather than admission or another service?
- Does the first proviso to section 12(11) displace the specific location in clauses (a)–(c) when no recipient address is on record, and how does it interact with the electronic-prepaid second proviso?
- Which location rule governs one non-electronic prepaid supply leg when it fits both the through-a-selling-agent description in section 12(11)(c)(i) and the to-final-subscriber description in (c)(ii), with different locations?
See also
- Section 13 of the IGST Act, 2017: place of supply of services where location of supplier or location of recipient is outside India
- Section 16 of the CGST Act, 2017: eligibility and conditions for taking input tax credit
- Section 17 of the CGST Act, 2017: apportionment of credit and blocked credits
- Section 49 of the CGST Act, 2017: payment of tax, interest, penalty and other amounts
References
- Central Board of Indirect Taxes and Customs. "Section 12. Place of supply of services where location of supplier and recipient is in India". Integrated Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
External links
- IGST Act, 2017, Section 12 on the CBIC tax information portal