Time and place of supply
The place of supply decides which tax you charge: CGST and SGST when the sale is inside one state, IGST when it crosses states. The time of supply decides which period you owe the tax in.
Last reviewed 2026-10-18. GST facts checked as of 2026-07-22.
Place of supply
Place of supply is the state where a sale is treated as happening for GST. When your location and the place of supply are in the same state, the sale is intra state and you charge CGST and SGST. When they are in different states, the sale is inter state and you charge IGST.
The rules for the place of supply are in the IGST Act. For services they differ by the kind of service and by whether the buyer is registered, and exports and imports have their own rules. Check the rule that applies to your sale.
A wrong place of supply charges the wrong tax. Your buyer then cannot claim the credit cleanly, so confirm it before you invoice.
Time of supply
Time of supply is the point when the tax becomes due. For goods, tax falls due on the invoice date, or on the last date by which the invoice should have been issued, if that is earlier. An advance received for goods does not change this (Notification 66/2017-Central Tax). For services the rules are set separately.
It matters because it decides which return period includes the sale. An invoice raised late can change the period. Ask your accountant about the exact rule for your case.
Where you see it in practice
- On the invoice, as the tax split into CGST and SGST or IGST, and the place of supply.
- In GSTR-1, where sales are grouped by the state of supply.
- In GSTR-3B table 3.2, which reports supplies to other states made to unregistered buyers, composition dealers and UIN holders, by state.
How Bahi Khata helps
Bahi Khata makes a tax invoice with the right tax split, CGST and SGST for a sale inside your state and IGST for a sale to another state.
Official sources
Related guides
Questions
When do I charge IGST instead of CGST and SGST?
When the place of supply is in a different state from your location, the sale is inter state and you charge IGST.
Is the place of supply the billing address?
Not necessarily. The place of supply rules are in the IGST Act, so confirm it before you invoice.
What does time of supply decide?
The point when the tax becomes due, and so the return period that includes the sale.
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