The Integrated Goods and Services Tax Act, 2017
# THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017

____________

# ARRANGEMENT OF SECTIONS

CHAPTER I

PRELIMINARY

SECTIONS

1. Short title, extent and commencement.
2. Definitions.

CHAPTER II

ADMINISTRATION

3. Appointment of officers.
4. Authorisation of officers of State tax or Union territory tax as proper officer in certain

circumstances.

CHAPTER III

LEVY AND COLLECTION OF TAX

5. Levy and collection.
6. Power to grant exemption from tax.

CHAPTER IV

DETERMINATION OF NATURE OF SUPPLY

7. Inter-State supply.
8. Intra-State supply.
9. Supplies in territorial waters.

CHAPTER V

PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH

10. Place of supply of goods other than supply of goods imported into, or exported from India.
11. Place of supply of goods imported into, or exported from India.
12. Place of supply of services where location of supplier and recipient is in India.
13. Place of supply of services where location of supplier or location of recipient is outside India.
14. Special provision for payment of tax by a supplier of online information and database access or

retrieval services.

14A. Special provision for specified actionable claims supplied by a person located outside taxable

territory.

CHAPTER VI

REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST

15. Refund of integrated tax paid on supply of goods to tourist leaving India.

CHAPTER VII

ZERO RATED SUPPLY

16. Zero rated supply.

CHAPTER VIII

APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS

17. Apportionment of tax and settlement of funds.


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SECTIONS

17A. Transfer of certain amounts.
18. Transfer of input tax credit.
19. Tax wrongfully collected and paid to Central Government or State Government.

CHAPTER IX

MISCELLANEOUS

20. Application of provisions of Central Goods and Services Tax Act.
21. Import of services made on or after the appointed day.
22. Power to make rules.
23. Power to make regulations.
24. Laying of rules, regulations and notifications.
25. Removal of difficulties.


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# THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 

 ACT NO. 13 OF 2017

[12th April, 2017.]

# An Act to make a provision for levy and collection of tax on inter-State supply of goods or
 services or both by the Central Government and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

**1. Short title, extent and commencement.—(1) This Act may be called the Integrated Goods and**

Services Tax Act, 2017.

(2) It shall extend to the whole of India except the State of Jammu and Kashmir*.

(3) It shall come into force on such date[1] as the Central Government may, by notification in the

Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference

in any such provision to the commencement of this Act shall be construed as a reference to the coming
into force of that provision.

**2. Definitions.—In this Act, unless the context otherwise requires,––**

(1) “Central Goods and Services Tax Act” means the Central Goods and Services Tax Act, 2017;

(2) ‘‘central tax” means the tax levied and collected under the Central Goods and Services Tax

Act;

(3) “continuous journey” means a journey for which a single or more than one ticket or invoice is

issued at the same time, either by a single supplier of service or through an agent acting on behalf of
more than one supplier of service, and which involves no stopover between any of the legs of the
journey for which one or more separate tickets or invoices are issued.

_Explanation.––For the purposes of this clause, the term “stopover” means a place where a_

passenger can disembark either to transfer to another conveyance or break his journey for a certain
period in order to resume it at a later point of time;

(4) “customs frontiers of India” means the limits of a customs area as defined in section 2 of the

Customs Act, 1962 (52 of 1962);

(5) “export of goods” with its grammatical variations and cognate expressions, means taking

goods out of India to a place outside India;

(6) “export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible

foreign exchange; [2][or in Indian rupees wherever permitted by the Reserve Bank of India]; and

1. 22nd June, 2017 for sections 1, 2, 3, 14, 20 and 22 vide notification No. G.S.R. 603 (E) dated the 19th June, 2017, see Gazette
of India, Extraordinary, Part II, sec. 3(i).

1st July, 2017 for sections 4 to 13, 16 to 19, 21, 23 to 25 vide notification No. G.S.R. 662(E) dated 28th June

2017, see Gazette of India, Extraordinary, Part II, sec. 3(i).

_* Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and_
Kashmir and the Union territory of Ladakh.
2. Ins. by Act 32 of 2018, s. 2 (w.e.f. 1-2-2019).


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(v) the supplier of service and the recipient of service are not merely establishments of a

distinct person in accordance with Explanation 1 in section 8;

(7) “fixed establishment” means a place (other than the registered place of business) which is

characterised by a sufficient degree of permanence and suitable structure in terms of human and
technical resources to supply services or to receive and use services for its own needs;

(8) “Goods and Services Tax (Compensation to States) Act” means the Goods and Services Tax

(Compensation to States) Act, 2017;

(9) “Government” means the Central Government;

(10) ‘‘import of goods” with its grammatical variations and cognate expressions, means bringing

goods into India from a place outside India;

(11) ‘‘import of services” means the supply of any service, where––

(i) the supplier of service is located outside India;

(ii) the recipient of service is located in India; and

(iii) the place of supply of service is in India;

(12) “integrated tax” means the integrated goods and services tax levied under this Act;

(13) “intermediary” means a broker, an agent or any other person, by whatever name called, who

arranges or facilitates the supply of goods or services or both, or securities, between two or more
persons, but does not include a person who supplies such goods or services or both or securities on his
own account;

(14) “location of the recipient of services” means,––

(a) where a supply is received at a place of business for which the registration has been

obtained, the location of such place of business;

(b) where a supply is received at a place other than the place of business for which

registration has been obtained (a fixed establishment elsewhere), the location of such fixed
establishment;

(c) where a supply is received at more than one establishment, whether the place of business

or fixed establishment, the location of the establishment most directly concerned with the receipt
of the supply; and

(d) in absence of such places, the location of the usual place of residence of the recipient;

(15) “location of the supplier of services” means,––

(a) where a supply is made from a place of business for which the registration has been

obtained, the location of such place of business;

(b) where a supply is made from a place other than the place of business for which

registration has been obtained (a fixed establishment elsewhere), the location of such fixed
establishment;

(c) where a supply is made from more than one establishment, whether the place of business

or fixed establishment, the location of the establishment most directly concerned with the
provision of the supply; and

(d) in absence of such places, the location of the usual place of residence of the supplier;

1[(16) “non-taxable online recipient” means any unregistered person receiving online information

and database access or retrieval services located in taxable territory.

_Explanation.—For the purposes of this clause, the expression “unregistered person” includes a_

person registered solely in terms of clause (vi) of section 24 of the Central Goods and Services Tax
Act, 2017 (12 of 2017);]

1. Subs. by Act 8 of 2023, s. 160, for clause (16) (w.e.f. 1-10-2023).


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# (17) “online information and database access or retrieval services” means services whose
 delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply [1]*** impossible to ensure in the absence of information technology and includes electronic services such as,––

(i) advertising on the internet;

(ii) providing cloud services;

(iii) provision of e-books, movie, music, software and other intangibles through

telecommunication networks or internet;

(iv) providing data or information, retrievable or otherwise, to any person in electronic form

through a computer network;

(v) online supplies of digital content (movies, television shows, music and the like);

(vi) digital data storage; and

2[(vii) online gaming, excluding the online money gaming as defined in clause (80B) of

section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017);].

(18) “output tax”, in relation to a taxable person, means the integrated tax chargeable under this

Act on taxable supply of goods or services or both made by him or by his agent but excludes tax
payable by him on reverse charge basis;

(19) “Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of

section 2 of the Special Economic Zones Act, 2005 (28 of 2005);

(20) “Special Economic Zone developer” shall have the same meaning as assigned to it in

clause (g) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) and includes an
Authority as defined in clause (d) and a Co-Developer as defined in clause (f) of section 2 of the said
Act;

(21) “supply” shall have the same meaning as assigned to it in section 7 of the Central Goods and

Services Tax Act;

(22) “taxable territory” means the territory to which the provisions of this Act apply;

(23) “zero-rated supply” shall have the meaning assigned to it in section 16;

(24) words and expressions used and not defined in this Act but defined in the Central Goods and

Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax
(Compensation to States) Act shall have the same meaning as assigned to them in those Acts;

(25) any reference in this Act to a law which is not in force in the State of Jammu and Kashmir*,

shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in
that State.

CHAPTER II

ADMINISTRATION

**3. Appointment of officers.––The Board may appoint such central tax officers as it thinks fit for**

exercising the powers under this Act.

1. Certain words omitted by Act 8 of 2023, s. 160 (w.e.f. 1-10-2023).
2. Subs. by Act 31 of 2023, s. 2, for sub-clause (vii) (w.e.f. 1-10-2023).


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**4. Authorisation of officers of State tax or Union territory tax as proper officer in certain**

**circumstances.––Without prejudice to the provisions of this Act, the officers appointed under the State**
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the
proper officers for the purposes of this Act, subject to such exceptions and conditions as the Government
shall, on the recommendations of the Council, by notification, specify.

CHAPTER III

LEVY AND COLLECTION OF TAX

**5. Levy and collection.––(1) Subject to the provisions of sub-section (2), there shall be levied a tax**

called the integrated goods and services tax on all inter-State supplies of goods or services or both, except
on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the
Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by
the Government on the recommendations of the Council and collected in such manner as may be
prescribed and shall be paid by the taxable person:

Provided that the integrated tax on goods [1][other than the goods as may be notified by the

Government on the recommendations of the Council] imported into India shall be levied and collected in
accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) on the value as
determined under the said Act at the point when duties of customs are levied on the said goods under
section 12 of the Customs Act, 1962 (52 of 1962).

(2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly

known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be
notified by the Government on the recommendations of the Council.

(3) The Government may, on the recommendations of the Council, by notification, specify categories

of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the
recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient
as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

2[(4) The Government may, on the recommendations of the Council, by notification, specify a class of

registered persons who shall, in respect of supply of specified categories of goods or services or both
received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply
of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the
person liable for paying the tax in relation to such supply of goods or services or both.]

(5) The Government may, on the recommendations of the Council, by notification, specify categories

of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if
such services are supplied through it, and all the provisions of this Act shall apply to such electronic
commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such
services:

Provided that where an electronic commerce operator does not have a physical presence in the taxable

territory, any person representing such electronic commerce operator for any purpose in the taxable
territory shall be liable to pay tax:

Provided further that where an electronic commerce operator does not have a physical presence in the

taxable territory and also does not have a representative in the said territory, such electronic commerce
operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall
be liable to pay tax.

**6. Power to grant exemption from tax.–– (1) Where the Government is satisfied that it is necessary**

in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt
generally, either absolutely or subject to such conditions as may be specified therein, goods or services or
both of any specified description from the whole or any part of the tax leviable thereon with effect from
such date as may be specified in such notification.

1. Ins. by Act 31 of 2023, s. 3 (w.e.f. 1-10-2023).
2. Subs. by Act 32 of 2018, s. 3, for sub-section (4) (w.e.f. 1-2-2019).


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(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the

recommendations of the Council, by special order in each case, under circumstances of an exceptional
nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax
is leviable.

(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying

the scope or applicability of any notification issued under sub-section (1) or order issued under
sub-section (2), insert an Explanation in such notification or order, as the case may be, by notification at
any time within one year of issue of the notification under sub-section (1) or order under sub-section (2),
and every such Explanation shall have effect as if it had always been the part of the first such notification
or order, as the case may be.

_Explanation.––For the purposes of this section, where an exemption in respect of any goods or_

services or both from the whole or part of the tax leviable thereon has been granted absolutely, the
registered person supplying such goods or services or both shall not collect the tax, in excess of the
effective rate, on such supply of goods or services or both.

CHAPTER IV

DETERMINATION OF NATURE OF SUPPLY

**7. Inter-State supply.––(1) Subject to the provisions of section 10, supply of goods, where the**

location of the supplier and the place of supply are in––

(a) two different States;

(b) two different Union territories; or

(c) a State and a Union territory,

shall be treated as a supply of goods in the course of inter-State trade or commerce.

(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.

(3) Subject to the provisions of section 12, supply of services, where the location of the supplier and

the place of supply are in––

(a) two different States;

(b) two different Union territories; or

(c) a State and a Union territory,

shall be treated as a supply of services in the course of inter-State trade or commerce.

(4) 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.

(5) Supply of goods or services or both,––

(a) when the supplier is located in India and the place of supply is outside India;

(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or

(c) 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.

**8. Intra-State supply.––(1) Subject to the provisions of section 10, supply of goods where the**

location of the supplier and the place of supply of goods are in the same State or same Union territory
shall be treated as intra-State supply:

Provided that the following supply of goods shall not be treated as intra-State supply, namely:––

(i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;

(ii) goods imported into the territory of India till they cross the customs frontiers of India; or


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(iii) supplies made to a tourist referred to in section 15.

(2) Subject to the provisions of section 12, supply of services where the location of the supplier and

the place of supply of services are in the same State or same Union territory shall be treated as intra-State
supply:

Provided that the intra-State supply of services shall not include supply of services to or by a Special

Economic Zone developer or a Special Economic Zone unit.

_Explanation 1.––For the purposes of this Act, where a person has,––_

(i) an establishment in India and any other establishment outside India;

(ii) an establishment in a State or Union territory and any other establishment outside that State or

Union territory; or

(iii) an establishment in a State or Union territory and any other establishment [1]*** registered

within that State or Union territory,

then such establishments shall be treated as establishments of distinct persons.

_Explanation 2.––A person carrying on a business through a branch or an agency or a representational_

office in any territory shall be treated as having an establishment in that territory.

**9. Supplies in territorial waters.––Notwithstanding anything contained in this Act,––**

(a) where the location of the supplier is in the territorial waters, the location of such supplier; or

(b) where the place of supply is in the territorial waters, the place of supply,

shall, for the purposes of this Act, be deemed to be in the coastal State or Union territory where the
nearest point of the appropriate baseline is located.

CHAPTER V

PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH

**10. Place of supply of goods other than supply of goods imported into, or exported from India.––**

(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall
be as under,––

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by

any other person, the place of supply of such goods shall be the location of the goods at the time at
which the movement of goods terminates for delivery to the recipient;

(b) where the goods are delivered by the supplier to a recipient or any other person on the

direction of a third person, whether acting as an agent or otherwise, before or during movement of
goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed
that the said third person has received the goods and the place of supply of such goods shall be the
principal place of business of such person;

(c) where the supply does not involve movement of goods, whether by the supplier or the

recipient, the place of supply shall be the location of such goods at the time of the delivery to the
recipient;

2[(ca) where the supply of goods is made to a person other than a registered person, the place of

supply shall, notwithstanding anything contrary contained in clause (a) or clause (c), be the location
as per the address of the said person recorded in the invoice issued in respect of the said supply and
the location of the supplier where the address of the said person is not recorded in the invoice.

_Explanation.—For the purposes of this clause, recording of the name of the State of the said_

person in the invoice shall be deemed to be the recording of the address of the said person;]

(d) where the goods are assembled or installed at site, the place of supply shall be the place of

such installation or assembly;

1. The words “being a business vertical” omitted by Act 32 of 2018, s. 4 (w.e.f. 1-2-2019).
2. Ins. by Act 31 of 2023, s. 4 (w.e.f. 1-10-2023).


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(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or

a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined

in such manner as may be prescribed.

**11. Place of supply of goods imported into, or exported from India.––The place of supply of**

goods,––

(a) imported into India shall be the location of the importer;

(b) exported from India shall be the location outside India.

**12. Place of supply of services where location of supplier and recipient is in India.––(1) The**

provisions of this section shall apply to determine the place of supply of services where the location of
supplier of services and the location of the recipient of services is in India.

(2) The place of supply of services, except the services specified in sub-sections (3) to (14),––

(a) made to a registered person shall be the location of such person;

(b) made to any person other than a registered person shall be,––

(i) the location of the recipient where the address on record exists; and

(ii) the location of the supplier of services in other cases.

(3) The place of supply of services,––

(a) directly in relation to an immovable property, including services provided by architects,

interior decorators, surveyors, engineers and other related experts or estate agents, any service
provided by way of grant of rights to use immovable property or for carrying out or co-ordination of
construction work; or

(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite,

by whatever name called, and including a house boat or any other vessel; or

(c) by way of accommodation in any immovable property for organising any marriage or

reception or matters related thereto, official, social, cultural, religious or business function including
services provided in relation to such function at such property; or

(d) any services ancillary to the services referred to in clauses (a), (b) and (c),

shall be the location at which the immovable property or boat or vessel, as the case may be, is located or
intended to be located:

Provided that if the location of the immovable property or boat or vessel is located or intended to be

located outside India, the place of supply shall be the location of the recipient.

_Explanation.––Where the immovable property or boat or vessel is located in more than one State or_

Union territory, the supply of services shall be treated as made in each of the respective States or Union
territories, in proportion to the value for services separately collected or determined in terms of the
contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such
other basis as may be prescribed.

(4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty

treatment, health service including cosmetic and plastic surgery shall be the location where the services
are actually performed.

(5) The place of supply of services in relation to training and performance appraisal to,––

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location where the services are actually

performed.


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(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting,

scientific, educational, entertainment event or amusement park or any other place and services ancillary
thereto, shall be the place where the event is actually held or where the park or such other place is located.

(7) The place of supply of services provided by way of,—

(a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment event

including supply of services in relation to a conference, fair, exhibition, celebration or similar
events; or

(b) services ancillary to organisation of any of the events or services referred to in clause (a), or

assigning of sponsorship to such events,––

(i) to a registered person, shall be the location of such person;

(ii) to a person other than a registered person, shall be the place where the event is actually

held and if the event is held outside India, the place of supply shall be the location of the
recipient.

_Explanation.––Where the event is held in more than one State or Union territory and a_

consolidated amount is charged for supply of services relating to such event, the place of supply of
such services shall be taken as being in each of the respective States or Union territories in proportion
to the value for services separately collected or determined in terms of the contract or agreement
entered into in this regard or, in the absence of such contract or agreement, on such other basis as may
be prescribed.

(8) The place of supply of services by way of transportation of goods, including by mail or courier

to,––

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location at which such goods are handed

over for their transportation.

1***]

(9) The place of supply of passenger transportation service to,—

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the place where the passenger embarks on the

conveyance for a continuous journey:

Provided that where the right to passage is given for future use and the point of embarkation is not

known at the time of issue of right to passage, the place of supply of such service shall be determined
in accordance with the provisions of sub-section (2).

_Explanation.––For the purposes of this sub-section, the return journey shall be treated as a_

separate journey, even if the right to passage for onward and return journey is issued at the same time.

(10) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a

motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the
journey.

(11) The place of supply of telecommunication services including data transfer, broadcasting, cable

and direct to home television services to any person shall,—

(a) in case of services by way of fixed telecommunication line, leased circuits, internet leased

circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable
connection or dish antenna is installed for receipt of services;

(b) in case of mobile connection for telecommunication and internet services provided on

post-paid basis, be the location of billing address of the recipient of services on the record of the
supplier of services;

1. Proviso omitted by Act 8 of 2023, s. 161 (w.e.f. 1-10-2023).


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(c) in cases where mobile connection for telecommunication, internet service and direct to home

television services are provided on pre-payment basis through a voucher or any other means,––

(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or

re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of
the supplier at the time of supply; or

(ii) by any person to the final subscriber, be the location where such pre-payment is received

or such vouchers are sold;

(d) in other cases, be the address of the recipient as per the records of the supplier of services and

where such address is not available, the place of supply shall be location of the supplier of services:

Provided that where the address of the recipient as per the records of the supplier of services is not

available, the place of supply shall be location of the supplier of services:

Provided further that if such pre-paid service is availed or the recharge is made through internet

banking or other electronic mode of payment, the location of the recipient of services on the record of
the supplier of services shall be the place of supply of such services.

_Explanation.––Where the leased circuit is installed in more than one State or Union territory and a_

consolidated amount is charged for supply of services relating to such circuit, the place of supply of such
services shall be taken as being in each of the respective States or Union territories in proportion to the
value for services separately collected or determined in terms of the contract or agreement entered into in
this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.

(12) The place of supply of banking and other financial services, including stock broking services to

any person shall be the location of the recipient of services on the records of the supplier of services:

Provided that if the location of recipient of services is not on the records of the supplier, the place of

supply shall be the location of the supplier of services.

(13) The place of supply of insurance services shall,––

(a) to a registered person, be the location of such person;

(b) to a person other than a registered person, be the location of the recipient of services on the

records of the supplier of services.

(14) The place of supply of advertisement services to the Central Government, a State Government, a

statutory body or a local authority meant for the States or Union territories identified in the contract or
agreement shall be taken as being in each of such States or Union territories and the value of such supplies
specific to each State or Union territory shall be in proportion to the amount attributable to services
provided by way of dissemination in the respective States or Union territories as may be determined in
terms of the contract or agreement entered into in this regard or, in the absence of such contract or
agreement, on such other basis as may be prescribed.

**13. Place of supply of services where location of supplier or location of recipient is outside**

**India.––(1) The provisions of this section shall apply to determine the place of supply of services where**
the location of the supplier of services or the location of the recipient of services is outside India.

(2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the

location of the recipient of services:

Provided that where the location of the recipient of services is not available in the ordinary course of

business, the place of supply shall be the location of the supplier of services.

(3) The place of supply of the following services shall be the location where the services are actually

performed, namely:—

(a) services supplied in respect of goods which are required to be made physically available by

the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of
services in order to provide the services:

Provided that when such services are provided from a remote location by way of electronic

means, the place of supply shall be the location where goods are situated at the time of supply of
services:


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1[Provided further that nothing contained in this clause shall apply in the case of services supplied

in respect of goods which are temporarily imported into India for repairs or for any other treatment or
process and are exported after such repairs or treatment or process without being put to any use in
India, other than that which is required for such repairs or treatment or process;]

(b) services supplied to an individual, represented either as the recipient of services or a person

acting on behalf of the recipient, which require the physical presence of the recipient or the person
acting on his behalf, with the supplier for the supply of services.

(4) The place of supply of services supplied directly in relation to an immovable property, including

services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn,
guest house, club or campsite, by whatever name called, grant of rights to use immovable property,
services for carrying out or co-ordination of construction work, including that of architects or interior
decorators, shall be the place where the immovable property is located or intended to be located.

(5) The place of supply of services supplied by way of admission to, or organisation of a cultural,

artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair,
exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place
where the event is actually held.

(6) Where any services referred to in sub-section (3) or sub-section (4) or sub-section (5) is supplied

at more than one location, including a location in the taxable territory, its place of supply shall be the
location in the taxable territory.

(7) Where the services referred to in sub-section (3) or sub-section (4) or sub-section (5) are supplied

in more than one State or Union territory, the place of supply of such services shall be taken as being in
each of the respective States or Union territories and the value of such supplies specific to each State or
Union territory shall be in proportion to the value for services separately collected or determined in terms
of the contract or agreement entered into in this regard or, in the absence of such contract or agreement,
on such other basis as may be prescribed.

(8) The place of supply of the following services shall be the location of the supplier of services,

namely:––

(a) services supplied by a banking company, or a financial institution, or a non-banking financial

company, to account holders;

(b) intermediary services;

(c) services consisting of hiring of means of transport, including yachts but excluding aircrafts

and vessels, up to a period of one month.

_Explanation.––For the purposes of this sub-section, the expression,––_

(a) “account” means an account bearing interest to the depositor, and includes a non-resident

external account and a non-resident ordinary account;

(b) “banking company” shall have the same meaning as assigned to it under clause (a) of

section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(c) ‘‘financial institution” shall have the same meaning as assigned to it in clause (c) of

section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);

(d) “non-banking financial company” means,––

(i) a financial institution which is a company;

(ii) a non-banking institution which is a company and which has as its principal business

the receiving of deposits, under any scheme or arrangement or in any other manner, or
lending in any manner; or

1. Subs. by Act 32 of 2018, s. 6 for the second proviso (w.e.f. 1-2-2019)


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(iii) such other non-banking institution or class of such institutions, as the Reserve Bank

of India may, with the previous approval of the Central Government and by notification in the
Official Gazette, specify.

1*  -  -  -               *

(10) The place of supply in respect of passenger transportation services shall be the place where the

passenger embarks on the conveyance for a continuous journey.

(11) The place of supply of services provided on board a conveyance during the course of a passenger

transport operation, including services intended to be wholly or substantially consumed while on board,
shall be the first scheduled point of departure of that conveyance for the journey.

(12) The place of supply of online information and database access or retrieval services shall be the

location of the recipient of services.

_Explanation.––For the purposes of this sub-section, person receiving such services shall be deemed to_

be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied,
namely:––

(a) the location of address presented by the recipient of services through internet is in the taxable

territory;

(b) the credit card or debit card or store value card or charge card or smart card or any other card

by which the recipient of services settles payment has been issued in the taxable territory;

(c) the billing address of the recipient of services is in the taxable territory;

(d) the internet protocol address of the device used by the recipient of services is in the taxable

territory;

(e) the bank of the recipient of services in which the account used for payment is maintained is in

the taxable territory;

(f) the country code of the subscriber identity module card used by the recipient of services is of

taxable territory;

(g) the location of the fixed land line through which the service is received by the recipient is in

the taxable territory.

(13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform

application of rules, the Government shall have the power to notify any description of services or
circumstances in which the place of supply shall be the place of effective use and enjoyment of a service.

**14. Special provision for payment of tax by a supplier of online information and database access**

**or retrieval services.––(1) On supply of online information and database access or retrieval services by**
any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier
of services located in a non-taxable territory shall be the person liable for paying integrated tax on such
supply of services:

Provided that in the case of supply of online information and database access or retrieval services by

any person located in a non-taxable territory and received by a non-taxable online recipient, an
intermediary located in the non-taxable territory, who arranges or facilitates the supply of such services,
shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory
and supplying such services to the non-taxable online recipient except when such intermediary satisfies
the following conditions, namely:––

(a) the invoice or customer’s bill or receipt issued or made available by such intermediary taking

part in the supply clearly identifies the service in question and its supplier in non-taxable territory;

(b) the intermediary involved in the supply does not authorise the charge to the customer or take

part in its charge which is that the intermediary neither collects or processes payment in any manner
nor is responsible for the payment between the non-taxable online recipient and the supplier of such
services;

1. Sub-section (9) omitted by Act 8 of 2023, s. 162 (w.e.f. 1-10-2023).


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(c) the intermediary involved in the supply does not authorise delivery; and

(d) the general terms and conditions of the supply are not set by the intermediary involved in the

supply but by the supplier of services.

(2) The supplier of online information and database access or retrieval services referred to in

sub-section (1) shall, for payment of integrated tax, take a single registration under the Simplified
Registration Scheme to be notified by the Government:

Provided that any person located in the taxable territory representing such supplier for any purpose in

the taxable territory shall get registered and pay integrated tax on behalf of the supplier:

Provided further that if such supplier does not have a physical presence or does not have a

representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for
the purpose of paying integrated tax and such person shall be liable for payment of such tax.

1[14A. Special provision for specified actionable claims supplied by a person located outside

**taxable territory. —(1) A supplier of online money gaming as defined in clause (80B) of section 2 of the**
Central Goods and Services Tax Act, 2017 (12 of 2017), not located in the taxable territory, shall in
respect of the supply of online money gaming by him to a person in the taxable territory, be liable to pay
integrated tax on such supply.

(2) For the purposes of complying with provisions of sub-section (1), the supplier of online money

gaming shall obtain a single registration under the Simplified Registration Scheme referred to in
sub-section (2) of section 14 of this Act:

Provided that any person located in the taxable territory representing such supplier for any purpose in

the taxable territory shall get registered and pay the integrated tax on behalf of the supplier:

Provided further that if such supplier does not have a physical presence or does not have a

representative for any purpose in the taxable territory, he shall appoint a person in the taxable territory for
the purpose of paying integrated tax and such person shall be liable for payment of such tax.

(3) In case of failure to comply with provisions of sub-section (1) or sub-section (2) by the supplier of

the online money gaming or a person appointed by such supplier or both, notwithstanding anything
contained in section 69A of the Information Technology Act, 2000 (21 of 2000), any information
generated, transmitted, received or hosted in any computer resource used for supply of online money
gaming by such supplier shall be liable to be blocked for access by the public in such manner as specified
in the said Act.

CHAPTER VI

REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST

**15. Refund of integrated tax paid on supply of goods to tourist leaving India.––The integrated tax**

paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such
manner and subject to such conditions and safeguards as may be prescribed.

_Explanation.––For the purposes of this section, the term “tourist” means a person not normally_

resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant
purposes.

CHAPTER VII

ZERO RATED SUPPLY

**16. Zero rated supply.––(1) “zero rated supply” means any of the following supplies of goods or**

services or both, namely:––

(a) export of goods or services or both; or

(b) supply of goods or services or both [2][for authorised operations] to a Special Economic Zone

developer or a Special Economic Zone unit.

1. Ins. by Act 31 of 2023, s. 5 (w.e.f. 1-10-2023).
2. Ins. by Act 13 of 2021, s. 123 (w.e.f. 28-3-2021).


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(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax

Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply
may be an exempt supply.

1[(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input

tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter
of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax
Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be
prescribed:

Provided that the registered person making zero rated supply of goods shall, in case of non-realisation

of sale proceeds, be liable to deposit the refund so received under this sub-section along with the
applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the
expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999) for
receipt of foreign exchange remittances, in such manner as may be prescribed.

(4) The Government may, on the recommendation of the Council, and subject to such conditions,

safeguards and procedures, by notification, specify––

(i) a class of persons who may make zero rated supply on payment of integrated tax and claim

refund of the tax so paid;

(ii) a class of goods or services which may be exported on payment of integrated tax and the

supplier of such goods or services may claim the refund of tax so paid.]

CHAPTER VIII

APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS

**17. Apportionment of tax and settlement of funds.––(1) Out of the integrated tax paid to the**

Central Government,––

(a) in respect of inter-State supply of goods or services or both to an unregistered person or to a

registered person paying tax under section 10 of the Central Goods and Services Tax Act;

(b) in respect of inter-State supply of goods or services or both where the registered person is not

eligible for input tax credit;

(c) in respect of inter-State supply of goods or services or both made in a financial year to a

registered person, where he does not avail of the input tax credit within the specified period and thus
remains in the integrated tax account after expiry of the due date for furnishing of annual return for
such year in which the supply was made;

(d) in respect of import of goods or services or both by an unregistered person or by a registered

person paying tax under section 10 of the Central Goods and Services Tax Act;

(e) in respect of import of goods or services or both where the registered person is not eligible for

input tax credit;

(f) in respect of import of goods or services or both made in a financial year by a registered

person, where he does not avail of the said credit within the specified period and thus remains in the
integrated tax account after expiry of the due date for furnishing of annual return for such year in
which the supply was received,

the amount of tax calculated at the rate equivalent to the central tax on similar intra-State supply shall be
apportioned to the Central Government.

(2) The balance amount of integrated tax remaining in the integrated tax account in respect of the

supply for which an apportionment to the Central Government has been done under sub-section (1) shall
be apportioned to the,––

(a) State where such supply takes place; and

(b) Central Government where such supply takes place in a Union territory:

1. Subs. by Act 13 of 2021, s. 123, for sub-section (3) (w.e.f. 28-3-2021).


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Provided that where the place of such supply made by any taxable person cannot be determined

separately, the said balance amount shall be apportioned to,––

(a) each of the States; and

(b) Central Government in relation to Union territories,

in proportion to the total supplies made by such taxable person to each of such States or Union territories,
as the case may be, in a financial year:

Provided further that where the taxable person making such supplies is not identifiable, the said

balance amount shall be apportioned to all States and the Central Government in proportion to the amount
collected as State tax or, as the case may be, Union territory tax, by the respective State or, as the case
may be, by the Central Government during the immediately preceding financial year.

1[(2A) The amount not apportioned under sub-section (1) and sub-section (2) may, for the time being,

on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central
Government and fifty per cent. to the State Governments or the Union territories, as the case may be,
on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections.]

(3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated tax shall, mutatis

_mutandis, apply to the apportionment of interest, penalty and compounding amount realised in connection_
with the tax so apportioned.

(4) Where an amount has been apportioned to the Central Government or a State Government under

sub-section (1) or sub-section (2) or sub-section (3), the amount collected as integrated tax shall stand
reduced by an amount equal to the amount so apportioned and the Central Government shall transfer to
the central tax account or Union territory tax account, an amount equal to the respective amounts
apportioned to the Central Government and shall transfer to the State tax account of the respective States
an amount equal to the amount apportioned to that State, in such manner and within such time as may be
prescribed.

(5) Any integrated tax apportioned to a State or, as the case may be, to the Central Government on

account of a Union territory, if subsequently found to be refundable to any person and refunded to such
person, shall be reduced from the amount to be apportioned under this section, to such State, or Central
Government on account of such Union territory, in such manner and within such time as may be
prescribed.

**2[17A. Transfer of certain amounts.––Where any amount has been transferred from the electronic**

cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act, the Government shall transfer to the State tax account or the
Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in
such manner and within such time, as may be prescribed.]

**18. Transfer of input tax credit.––On utilisation of credit of integrated tax availed under this Act for**

payment of,––

(a) central tax in accordance with the provisions of sub-section (5) of section 49 of the Central

Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount
equal to the credit so utilised and the Central Government shall transfer an amount equal to the
amount so reduced from the integrated tax account to the central tax account in such manner and
within such time as may be prescribed;

(b) Union territory tax in accordance with the provisions of section 9 of the Union Territory

Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount
equal to the credit so utilised and the Central Government shall transfer an amount equal to the
amount so reduced from the integrated tax account to the Union territory tax account in such manner
and within such time as may be prescribed;

1. Ins. by Act 32 of 2018, s. 7 (w.e.f. 1-2-2019).
2. Ins. by Act 23 of 2019, s. 114 (w.e.f. 1-1-2020).


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(c) State tax in accordance with the provisions of the respective State Goods and Services Tax

Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so
utilised and shall be apportioned to the appropriate State Government and the Central Government
shall transfer the amount so apportioned to the account of the appropriate State Government in such
manner and within such time as may be prescribed.

_Explanation.––For the purposes of this Chapter, “appropriate State” in relation to a taxable_

person, means the State or Union territory where he is registered or is liable to be registered under the
provisions of the Central Goods and Services Tax Act.

**19. Tax wrongfully collected and paid to Central Government or State Government.––(1) A**

registered person who has paid integrated tax on a supply considered by him to be an inter-State supply,
but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of
integrated tax so paid in such manner and subject to such conditions as may be prescribed.

(2) A registered person who has paid central tax and State tax or Union territory tax, as the case may

be, on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an
inter-State supply, shall not be required to pay any interest on the amount of integrated tax payable.

CHAPTER IX

MISCELLANEOUS

**20. Application of provisions of Central Goods and Services Tax Act.––Subject to the provisions**

of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating
to,––

(i) scope of supply;
(ii) composite supply and mixed supply;

(iii) time and value of supply;

(iv) input tax credit;

(v) registration;
(vi) tax invoice, credit and debit notes;

(vii) accounts and records;

(viii) returns, other than late fee;
(ix) payment of tax;

(x) tax deduction at source;

(xi) collection of tax at source;

(xii) assessment;
(xiii) refunds;

(xiv) audit;

(xv) inspection, search, seizure and arrest;

(xvi) demands and recovery;

(xvii) liability to pay in certain cases;

(xviii) advance ruling;

(xix) appeals and revision;

(xx) presumption as to documents;

(xxi) offences and penalties;

(xxii) job work;

(xxiii) electronic commerce;

(xxiv) transitional provisions; and


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(xxv) miscellaneous provisions including the provisions relating to the imposition of interest and

penalty,

shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to
central tax as if they are enacted under this Act:

Provided that in the case of tax deducted at source, the deductor shall deduct tax at the rate of two

per cent. from the payment made or credited to the supplier:

Provided further that in the case of tax collected at source, the operator shall collect tax at such rate

not exceeding two per cent, as may be notified on the recommendations of the Council, of the net value of
taxable supplies:

Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties,

cesses, fees and charges levied under any law for the time being in force other than this Act, and the
Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier:

Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax

Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the
penalty leviable under this Act shall be the sum total of the said penalties.

1[Provided also that where the appeal is to be filed before the Appellate Authority or the Appellate

Tribunal, the maximum amount payable shall be fifty crore rupees and one hundred crore rupees
respectively.]

**21. Import of services made on or after the appointed day.––Import of services made on or after**

the appointed day shall be liable to tax under the provisions of this Act regardless of whether the
transactions for such import of services had been initiated before the appointed day:

Provided that if the tax on such import of services had been paid in full under the existing law, no tax

shall be payable on such import under this Act:

Provided further that if the tax on such import of services had been paid in part under the existing law,

the balance amount of tax shall be payable on such import under this Act.

_Explanation.––For the purposes of this section, a transaction shall be deemed to have been initiated_

before the appointed day if either the invoice relating to such supply or payment, either in full or in part,
has been received or made before the appointed day.

**22. Power to make rules.––(1) The Government may, on the recommendations of the Council, by**

notification, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the provisions of sub-section (1), the Government may

make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in
respect of which provisions are to be or may be made by rules.

(3) The power to make rules conferred by this section shall include the power to give retrospective

effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act
come into force.

(4) Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a

penalty not exceeding ten thousand rupees.

**23. Power to make regulations.––The Board may, by notification, make regulations consistent with**

this Act and the rules made thereunder to carry out the provisions of this Act.

**24. Laying of rules, regulations and notifications.––Every rule made by the Government, every**

regulation made by the Board and every notification issued by the Government under this Act, shall be
laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session,
for a total period of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the
notification, as the case may be, or both Houses agree that the rule or regulation or the notification should
not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in

1. The proviso ins. by Act 32 of 2018, s. 8 (w.e.f. 1-2-2019).


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such modified form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that rule or
regulation or notification, as the case may be.

**25. Removal of difficulties.––(1) If any difficulty arises in giving effect to any provision of this Act,**

the Government may, on the recommendations of the Council, by a general or a special order published in
the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or
regulations made thereunder, as may be necessary or expedient for the purpose of removing the said
difficulty:

Provided that no such order shall be made after the expiry of a period of [1][five years] from the date of

commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each

House of Parliament.

1. Subs. by Act 12 of 2020, s. 134, for “three years” (w.e.f. 30-6-2020).


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