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 7, verbatim (show)
Section 7. Inter-State supply.-
(1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in-
(a) two different States;
(b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce.
(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
(3) Subject to the provisions of section 12, supply of services, where the location of the supplier and the place of supply are in-
(a) two different States;
(b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of services in the course of inter-State trade or commerce.
(4) Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.
(5) Supply of goods or services or both,-
(a) when the supplier is located in India and the place of supply is outside India;
(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or (c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.
7(1)(a) to (c)Goods comparison
shall be treated as a supply of goods in the course of inter-State trade or commerce.Section 7(1)(a) to (c)
Section 10 supplies the place used against supplier location. Different States, different Union territories or a State and Union territory satisfy the stated comparison. Section 9's overriding territorial-water deeming applies first.
7(2)Imported goods
till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.Section 7(2)
The goods must be imported into India. The customs-frontier condition defines the extent of this limb.
Questions to answer on the file4 questions
7(3)(a) to (c)Services comparison
shall be treated as a supply of services in the course of inter-State trade or commerce.Section 7(3)(a) to (c)
Section 12 supplies the place used against supplier location. The same different-jurisdiction combinations apply to services. Section 9's territorial-water deeming overrides the location comparison where applicable.
7(4)Imported services
Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.Section 7(4)
The statutory import-of-services classification identifies the supplies concerned. They receive the stated inter-State treatment.
Questions to answer on the file3 questions
7(5)(a) to (c)Other inter-State supplies
shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.Section 7(5)(a) to (c)
The list covers Indian supplier location with an overseas place of supply and dealings to or by a Special Economic Zone developer or unit. Its residual limb requires taxable-territory supply that is neither intra-State nor otherwise covered by section 7.
Questions to answer on the file4 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.
Scope and supplied law state 7(1)–(5)
Questions to answer on the file5 questions
Goods in different jurisdictions 7(1)
Questions to answer on the file7 questions
Services in different jurisdictions 7(3)
Questions to answer on the file7 questions
Supplies to or by an SEZ developer or unit 7(5)(b)
Questions to answer on the file4 questions
Residual supply in taxable territory 7(5)(c)
Questions to answer on the file5 questions
Frequently asked questions
Must Special Economic Zone dealings use the ordinary location test alone?
No. Sub-section (5)(b) expressly treats supplies to or by the developer or unit as inter-State.
Section 7(5)(b)
How long does the imported-goods limb apply?
Until the goods cross the customs frontiers of India. The goods must have been imported into India.
Section 7(2)
Which rule qualifies the supplier and place comparisons in territorial waters?
Section 9 supplies the overriding territorial-water deeming and is applied before those comparisons.
Section 7, read with section 9
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 9 | 7 supplier and place location comparisons overridden by Section 9; apply territorial-water deeming first | IGST 9 "Notwithstanding anything contained in this Act" |
| Section 7 of the CGST Act, 2017, Section 8 of the CGST Act, 2017 | 7 defined by Section 7 of the CGST Act, 2017, supply; and Section 8 of the CGST Act, 2017, composite/mixed supply classification | 7(5) "Supply of goods or services or both" |
| Section 77 of the CGST Act, 2017 | Section 77 of the CGST Act, 2017 requires IGST section 7 classification evidence; later-holding requirement remains separate | CGST 77(1) "subsequently held to be an inter-State supply" |
| Section 7 of the CGST Act, 2017, Section 8 of the CGST Act, 2017, Section 9 of the CGST Act, 2017 | 7 supply classification read with Section 7 of the CGST Act, 2017; Section 8 of the CGST Act, 2017; Section 9 of the CGST Act, 2017 | 7(1) "supply of goods"; 7(3) "supply of services"; CGST 9(1) uses intra-State classification |
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 (5)
| Number | Date | Subject |
|---|---|---|
| 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. 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. 1/01/2017-Compensation Cess | 26 July 2017 | Seeks to provide clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports. |
| Circular No. 1/01/2017-IGST | 7 July 2017 | Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding. |
Notifications (2)
| Number | Date | Subject |
|---|---|---|
| Notification No. 06/2018-Integrated Tax (Rate) | 25 January 2018 | Seeks to exempt royalty and license fee from Integrated tax to the extent it is paid on the consideration attributable to royalty and license fee included in transaction value under Rule 10(1)(c) of Customs Valuation (Determination of value of imported Goods) Rules, 2007 |
| Notification No. 08/2017-Integrated Tax (Rate) | 28 June 2017 | To notify the rates for supply of services under IGST Act amended by a later instrument |
See also
- Section 9 of the IGST Act, 2017: supplies in territorial waters
- Section 8 of the IGST Act, 2017: intra-State supply
- Section 7 of the CGST Act, 2017: scope of supply
- Section 8 of the CGST Act, 2017: tax liability on composite and mixed supplies
References
- Central Board of Indirect Taxes and Customs. "Section 7. Inter-State supply". Integrated Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.
External links
- IGST Act, 2017, Section 7 on the CBIC tax information portal