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 7, verbatim (show)
1[Rule 7. The supply of services attributable to different States or Union territories, under sub section (7) of section 13 of the said Act, in the case of services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services, or in the case of services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are supplied in more than one State or Union territory, shall be taken as being in each of the respective States or Union territories, and the proportion of value attributable to each such State and Union territory 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:-
(i) in the case of services supplied on the same goods, by equally dividing the value of the service in each of the States and Union territories where the service is performed;
(ii) in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in each of the States and Union territories, on which service is performed, as the ratio of the value of the service performed in each State or Union territory;
(iii) in the case of services supplied to individuals, by applying the generally accepted accounting principles. Illustration-1 : A company C which is located in Kolkata is providing the services of testing of a dredging machine and the testing service on the machine is carried out in Orissa and Andhra Pradesh. The place of supply is in Orissa and Andhra Pradesh and the value of the service in Orissa and Andhra Pradesh will be ascertained by dividing the value of the service equally between these two States. Illustration-2 : A company C which is located in Delhi is providing the service of servicing of two cars belonging to Mr. X. One car is of manufacturer J and is located in Delhi and is serviced by its Delhi workshop. The other car is of manufacturer A and is located in Gurugram and is serviced by its Gurugram workshop. The value of service attributable to the Union Territory of Delhi and the State of Haryana respectively shall be calculated by applying the ratio of the invoice value of car J and the invoice value of car A, to the total value of the service. Illustration-3 : A makeup artist M has to provide make up services to an actor A. A is shooting some scenes in Mumbai and some scenes in Goa. M provides the makeup services in Mumbai and Goa. The services are provided in Maharashtra and Goa and the value of the service in Maharashtra and Goa will be ascertained by applying the generally accepted accounting principles.]
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.
Goods or individual cross-border fallback scope 7 opening
Questions to answer on the file8 questions
Goods allocation method selection 7(i)–(ii)
Questions to answer on the file2 questions
Same-goods equal-allocation arithmetic 7(i)
Questions to answer on the file2 questions
Different-goods invoice-value allocation arithmetic 7(ii)
Questions to answer on the file3 questions
Proposed GAAP allocation basis 7(iii)
Questions to answer on the file2 questions
Arithmetic under the separately established GAAP ratio 7(iii)
Questions to answer on the file2 questions
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 | Change |
|---|---|
| 1 | Inserted (w.e.f. 01.01.2019) by Notification No. 04/2018 Integrated Tax dated 31.12.2018. |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 13 of the IGST Act, 2017 | this provision refers to Section 13 of the IGST Act, 2017 | sub section (7) of section 13 |
Circulars and notifications
No circular or notification in the CBIC repository is recorded as citing this rule.
Unsettled questions
The words of Rule 7 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- Which generally accepted accounting principles and allocation basis apply to the identified multi-State service working under IGST Rule 5 or Rule 7(iii)?
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
References
- Central Board of Indirect Taxes and Customs. "Rule 7. Cross-border allocation for goods and individuals". Integrated Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
External links
- IGST Rules, 2017, Rule 7 on the CBIC tax information portal