GST Location of Supplier and Recipient

In a GST invoice, the location of supplier and location of recipient play an important role in the determination of the applicability of IGST or CGST and SGST. If the supply is inter-state, IGST would be applicable. If the supply is intra-state, CGST and SGST would be applicable. In this article, we look at how to determine the location of the supplier and location of the recipient as per rules provided in the GST Act.

Who is a Supplier?

Under GST, a supplier shall refer to as someone who supplies any goods or services. A supplier also includes an agent acting on behalf of a supplier for the supply of goods or services.

Location of Supplier

Location of supplier is usually where a supply is made from, a place mentioned as a principal place of business on the GST registration certificate. In case the supplier distributes the supplier apart from the places as mentioned on the GST registration certificate, the supplier can use the location of a place mentioned on the GST registration certificate.

If the supplier makes the supply from more than one location, the supplier can treat the location of the supplier which directly reflects the concerned supply. If the supplier is unable to determine the place of supply, the concerned individual shall use the usual place of residence of the supplier as the location of the supplier on the GST invoice.

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Who is the Recipient?

Recipient of the supply of goods or services is someone who is liable for payment of consideration for the supply of goods or services. If no consideration is payable, the person to whom the goods are delivered or made available, or uses the goods or services shall apply as the recipient. The word recipient shall also apply to the reference to an agent acting on behalf of a recipient.

Location of Recipient

The location of the recipient in relation to the site of the provider shall determine the type of GST to use on the transaction. The location of consignee usually refers to the place of business that reflects on the GST registration certificate (In the case of B2B supply), the place of supply shall act as the location.

If the supply is received at a place which is not mentioned on the GST registration certificate, then the location of that place can be used as the location of recipient.

If the consignee receives the supply at more than one place, then the provider shall use the location most directly concerned with the receipt of supply as the location of recipient.

In the absence of any of the above, the supplier shall use the location of the usual place of residence of the recipient as the location of the recipient.

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