Step 01
POS resolved at invoice creation
Section 10 (goods) or Section 12 (services) applied based on supplier location, recipient location and supply type. Cross-border supplies (Section 11) handled separately.
GST Compliance | Place of Supply Rules
Place of supply, validated at invoice creation. Right CGST/SGST/IGST split.
Sections 10, 11 and 12 of the IGST Act applied at invoice creation. Branch transfer vs interstate sale auto-classified. Service-specific rules (telecom, banking, training, transportation) handled. The wrong CGST/SGST vs IGST split never makes it to the books.
How it works
Place of supply, applied at the line.
Step 02
CGST/SGST/IGST split
Right tax split computed automatically. Intra-state = CGST + SGST; inter-state = IGST; export = zero-rated with LUT/SEZ flag.
Step 03
Branch transfer vs sale
Branch transfers between distinct GSTINs (under same PAN) auto-classified per Schedule I and the IGST Act. Self-invoice generated where required.
Step 04
Validation gate
Errors (mismatched POS, wrong tax split) surfaced before posting. The wrong invoice never makes it to GSTR-1.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| POS engine | Supplier + recipient locations + supply type | Place of supply per line |
| Tax split | POS + supplier GSTIN | CGST + SGST or IGST per line |
| Branch transfer flag | Inter-GSTIN movement under same PAN | Schedule I supply with self-invoice |
| Service-specific rules | Service type (telecom, banking, training, transport) | Section 12 sub-rule applied |
| Validation gate | Drafted invoice | Errors with drill-down before posting |
-
POS engine
- Input
- Supplier + recipient locations + supply type
- Output
- Place of supply per line
-
Tax split
- Input
- POS + supplier GSTIN
- Output
- CGST + SGST or IGST per line
-
Branch transfer flag
- Input
- Inter-GSTIN movement under same PAN
- Output
- Schedule I supply with self-invoice
-
Service-specific rules
- Input
- Service type (telecom, banking, training, transport)
- Output
- Section 12 sub-rule applied
-
Validation gate
- Input
- Drafted invoice
- Output
- Errors with drill-down before posting
Compliance + integrations
IGST Act sections, applied at the line.
Sections 10, 11, 12 and 13 of the IGST Act applied with the right sub-rule per service type. Branch transfers and stock movements covered.
Regulations we work within
-
Section 10, IGST Act
Place of supply for goods.
-
Section 12, IGST Act
Place of supply for services within India.
-
Section 13, IGST Act
Place of supply for cross-border services.
-
Schedule I, CGST Act
Branch transfers between distinct persons.
Connects to
- GSTN POS validated against GSTN GSTIN data
- Tally Prime Invoice sync
Place of Supply Rules FAQ
What buyers ask.
Telecom, banking and training services have special rules. Handled?
Yes. Section 12 sub-rules for telecom (12(11)), banking (12(12)), training and education (12(5)) and others are applied automatically based on service type configured at the item master.
Branch transfer between two GSTINs of the same legal entity. Treated as supply?
Yes, under Schedule I (paragraph 2). The system auto-generates a self-invoice for the branch transfer and applies IGST. The receiving GSTIN claims ITC.
Cross-border export of services. POS rule?
Section 13 of the IGST Act applies. The system handles the standard rules (POS = location of recipient) and the exceptions (POS = location of supplier for specified services).
Run an invoice through the POS engine.
Connect one GSTIN, free. Create an invoice with two states and a service line. The POS engine resolves it; the right tax split is on screen.