Chapter V - Place of supply of goods or services
Section 13
Section 13: Place of supply of cross-border services
When either the service supplier or recipient is outside India, Section 13 locates the place of supply. Its recipient-location default has important exceptions. The separate supplier-location rule for intermediary services was omitted with effect from 30 March 2026.
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Need advice on Section 13?
This article is for general information. Refer to the Integrated Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Introduction
Start with the locations of the supplier and recipient. Section 13 applies if either is outside India; Section 12 covers services where both are in India. Then classify the actual service before using the general rule.
The Finance Act, 2026 omitted Section 13(8)(b) on 30 March 2026. Intermediary services therefore no longer have that supplier-location rule; their place of supply normally follows subsection (2), unless another specific Section 13 rule fits the service.
Key takeaways
Default: recipient location
For services outside the specific categories in subsections (3)–(13), the place of supply is the recipient's location. If that location is unavailable in the ordinary course of business, use the supplier's location.
Check service-specific exceptions
Physical-performance services, immovable property, events, banking services to account holders, short-term hiring of means of transport, passenger transport, on-board services and online information/database access can have different place rules.
Intermediary rule changed in 2026
Section 13(8)(b), which located intermediary services at the supplier, was omitted on 30 March 2026. Do not use the older consolidated Act's printed clause without applying this amendment.
Export status needs a separate test
An overseas place of supply alone does not establish an export of services. Check all conditions in Section 2(6), then the zero-rating rule in Section 16.
Choose the correct place-of-supply provision
Document the supplier and recipient locations first. Where either is outside India, use Section 13. Where both are in India, use Section 12 instead.
Identify the service's substance from the agreement, invoice and performance records; its label alone does not decide which subsection applies.
The recipient-location rule and its fallback
Subsection (2) places services not covered by a specific exception at the recipient's location. If the recipient's location is not available in the ordinary course of business, it switches to the supplier's location.
Keep ordinary business records supporting the recipient's location, including the contract and billing details. Do not assume a foreign billing address resolves every special-category service.
Services with a specific place rule
Subsection (3) covers qualifying services performed on physically available goods and services requiring an individual's physical presence. Subsection (4) concerns services directly related to immovable property; subsection (5) concerns admission to or organisation of events. Subsections (6) and (7) address services performed across multiple locations.
Subsection (8) retains supplier-location rules for specified banking/financial services to account holders and short-term hiring of means of transport. Later subsections address passenger transport, services on board a conveyance, online information and database access or retrieval, and notified effective-use circumstances. Subsection (9) was omitted in 2023.
What changed for intermediaries
Finance Act, 2026 Section 157 omitted IGST Section 13(8)(b). The Gazette's commencement clause did not defer Section 157, and the GST Council confirmed the omission took effect with Presidential assent on 30 March 2026.
For a genuine intermediary service, assess the recipient-location default in subsection (2), while checking whether the actual service also falls within another specific rule. The change does not by itself grant zero-rated export treatment.
Cross-check tax character and export conditions
After locating the place of supply, test the nature of the supply under Sections 7 and 8 and, for a claimed export of services, each condition in Section 2(6). These include supplier and recipient locations, place of supply, payment condition, and the rule concerning establishments of the same person.
If the supply qualifies as an export, Section 16 addresses zero rating. Preserve the contract, invoices, location evidence and payment evidence for that separate analysis.
Practical checklist
Do
- Record supplier and recipient locations and why Section 13 applies.
- Test each relevant specific subsection before using the recipient-location default.
- For intermediary services, apply the 30 March 2026 omission of subsection (8)(b) and retain the transaction classification evidence.
- Check Section 2(6) export conditions and Section 16 separately before treating a supply as zero-rated.
Frequently asked questions
Is every service to an overseas customer an export?
No. The place-of-supply result under Section 13 is only one part of the separate export-of-services test in Section 2(6).
Does Section 13(8)(b) still place intermediary services at the supplier's location?
No. Finance Act, 2026 Section 157 omitted that clause with effect from 30 March 2026. Apply the current Section 13 rules to the actual service.
When does Section 12 apply instead?
Section 12 applies where both the supplier and recipient of the service are located in India.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026