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Rule 6 of the IGST Rules, 2017

From the IndiaAuditLens Law Library

GST›IGST Rules, 2017

At a glance

Entitlement and conditions

  • 6 openingThe rule covers a leased circuit installed in more than one State or Union territory for a consolidated charge, without an agreement separately collecting or determining territorial values.

Procedure, powers and definitions

  • 6(a)The circuit’s start and end locations each count as a point. An intermediate location counts only where the circuit benefit is available there.
  • 6(b)Services are attributed to each territory in proportion to the number of qualifying circuit points located there.

Rule 6 allocates a consolidated charge for a leased circuit installed across States or Union territories when the parties have no agreement separately determining territorial values. The allocation follows the number of circuit points in each territory. Start and end locations always count; an intermediate location counts only if the benefit of the leased circuit is available there.[1]

Text

The text below is the rule 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 Rules as published in the Gazette of India is the legal source.

Rule 6, verbatim (show)

1[Rule 6. The supply of services attributable to different States or Union territories, under sub section (11) of section 12 of the said Act, in the case of supply of services relating to a leased circuit where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined in the following manner, namely:-

(a) The number of points in a circuit shall be determined in the following manner:

(i) in the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points;

(ii) any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point;

(b) the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the number of points lying in the State or Union territory. Illustration 1 : A company T installs a leased circuit between the Delhi and Mumbai offices of a company C. The starting point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of Maharashtra, respectively. Illustration 2 : A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company C. The starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The circuit also connects Bengaluru. Hence one point of this circuit is in Tamil Nadu and two points in Karnataka. The place of supply of this service is in the States of Tamil Nadu and Karnataka. The service shall be deemed to have been provided in the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively. Illustration 3 : A company T installs a leased circuit between the Kolkata, Patna and Guwahati offices of a company C. There are 3 points in this circuit in Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in West Bengal, Bihar and Assam. The place of supply of this service is in the States of West Bengal, Bihar and Assam. The service shall be deemed to have been provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam, respectively.]

1. Inserted (w.e.f. 01.01.2019) by Notification No. 04/2018 Integrated Tax dated 31.12.2018.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Leased-circuit allocation fallback scope 6 opening

Questions to answer on the file4 questions
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Eligibility of an individual circuit point 6(a)(i)–(ii)

Questions to answer on the file4 questions
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Total points for a two-endpoint circuit 6(a)(i)–(ii)

Questions to answer on the file1 question
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Circuit-point allocation arithmetic 6(b)

Questions to answer on the file3 questions
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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]

Amendments to Rule 6 as footnoted in the CBIC text
NoteChange
1Inserted (w.e.f. 01.01.2019) by Notification No. 04/2018 Integrated Tax dated 31.12.2018.
Provisions connected to Rule 6
ProvisionConnectionWords that tie them
Section 12 of the IGST Act, 2017this provision refers to Section 12 of the IGST Act, 2017sub section (11) of section 12

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this rule.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 6. Allocation of leased-circuit services". Integrated Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.

External links