The “Place of Supply” is a significant upgrade to our GST software. It is a crucial concept under the Goods and Services Tax (GST) regime. It determines which state’s GST is applicable to a particular transaction. The place of supply rules are designed to ensure that the tax revenue goes to the state where the consumption or utilization of goods or services occurs.

GST is a destination-based tax, meaning that the goods/services are taxed at the point of consumption rather than the point of origin. Therefore, the authority to collect GST will lie with the state in which they are consumed.

As a result, the place of supply is essential under GST because it is the focal point of all of its requirements. According to the GST, the location of the supplier of the products determines whether the transaction qualifies as intrastate or interstate and, as a result, the amount of SGST, CGST, and IGST that will be levied.

How to add Place of Supply in Sales Invoice:

• First, go to the Sales Invoice module in the left sidebar.
• Click on the Create Invoice button or press the Alt+N key.
• Select the Customer for creating the invoice.
• Click on the “Place of Supply” checkbox button.

• Select the State in the drop-down list.

Let’s have a look at some Examples:

Example 1- Intra-state sales – Seller Mr Anant of Surat, Gujarat sells 10 Laptop sets to Buyer Mr Purvesh of Vadodara, Gujarat (Gujarat to Gujarat)

• The place of supply is Vadodara in Gujarat. Since it is the same state Gujarat of both parties, CGST & SGST will be charged.

Example 2- Inter-state sales – Seller Mr Anant of Surat, Gujarat selles 25 Laptop sets to Buyer Mr Dharmesh of Mumbai, Maharashtra (Gujarat to Maharashtra)

• The place of supply is Mumbai in Maharashtra. Because the seller and buyer are located in different states, IGST will be charged.

Example 3- Deliver to a 3rd party as per instruction, Buyer Tejash in Lucknow (UP) buys goods from Seller Mr Anant in Surat (Gujarat). The buyer requests the seller to send the goods to Vadodara (Gujarat)

• In this case, it will be assumed that the buyer in Lucknow has received the goods & IGST will be charged. So Place of supply: Lucknow (UP) GST: IGST

If you encounter any issues or have questions, check our helpdesk or reach out to the support team for further assistance.