Section 7 of Integrated Goods and Services Tax Act 2017 – Interstate supply
(1) Subject to the provisions of section 10, the supply of goods, where the location of the supplier and the place of supply are in-
(a) two different States;
Example – Mr. A from Haryana selling Goods to Mr. B in Punjab.
Location of Supplier:- Haryana → Place of Supply:- Punjab
(b) two different Union territories; or
Example – Mr. A from Lakshadweep selling Goods to Mr. B in Daman & Diu.
Location of Supplier:- Lakshadweep → Place of Supply:- Daman & Diu
(c) a State and a Union territory,
shall be treated as a supply of goods in the course of inter-State trade or commerce.
Example – Mr. A from Haryana selling Goods to Mr. B in Daman & Diu.
Location of Supplier:- Haryana → Place of Supply:- Daman & Diu
(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
Example – Mr. A Imported Goods from Germany to India
Location of Supplier:- Germany → Place of Supply:- India
(3) Subject to the provisions of section 12, the supply of services, where the location of the supplier and the place of supply are in-
(a) two different States;
Example – Mr. A from Haryana Providing Services to Mr. B in Punjab.
Location of Supplier:- Haryana → Place of Supply:- Punjab
(b) two different Union territories; or
Example – Mr. A from Lakshadweep Providing Services to Mr. B in Daman & Diu.
Location of Supplier:- Lakshadweep → Place of Supply:- Daman & Diu
(c) a State and a Union territory
shall be treated as a supply of services in the course of inter-State trade or commerce.
Related Topic:
Scope of supply : section 7 of the CGST Act
Example – Mr. A from Haryana Providing Services to Mr. B in Daman & Diu.
Location of Supplier:- Haryana → Place of Supply:- Daman & Diu
(4) The supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.
Example – Mr. A Received Services in India from Mr. X in Germany.
Location of Supplier of services:- Germany → Place of Supply:- India
(5) Supply of goods or services or both,-
when the supplier is located in India and the place of supply is outside India;
Example – Mr. A in India Supplied goods or Services or both to Mr. X in Germany. [Export]
Location of Supplier of services:- India → Place of Supply:- Germany
to or by a Special Economic Zone developer or a Special Economic Zone unit;
Example – Mr. A Supplied Goods or Services or Both to Mr. Y in Special Economic Zone
Location of Supplier of services:- India → Place of Supply:- SEZ
or
in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,
(shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.
Example – Supply from a state to a place located in the Exclusive Economic Zone (EEZ)/Continental shelf & Vice versa.
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