16 June 20266 min read
Demystifying Place of Supply under Indian GST for Digital Services
Determine the exact place of supply for cross-border software, consultation, and SaaS services to identify tax vulnerability.
GSTPlace of Supply
Place of Supply for Digital Services
For cross-border services, identifying the Place of Supply (PoS) determines if the transaction is taxable in India or classified as an export.
Under Section 13 of the IGST Act, when either the supplier or the recipient is located outside India, the PoS is generally the location of the recipient. However, there are exceptions for intermediary services and physical performances. Ensure your contracts clearly place the beneficiary outside India to avoid 18% domestic tax liability.