Skip to main content
Avalara Help Center

Supported scenarios for calculating GST in India

This article applies to:AvaTax

AvaTax supports common scenarios for calculating central, state, and integrated goods and services taxes (GST) for transactions in India. These calculations rates rely on additional address information and unique transaction attributes. 

Before you begin

These calculations may require additional AvaTax subscriptions. Contact your account manager if you're interested in calculating for the scenarios outlined below

Scenarios for calculating GST on the sale of goods

Calculating GST for goods may require additional transaction attributes.

Supply Category

Nature and Place of Supply

AvaTax Address Type

Attribute
(Value)

Examples

Transport (Movement of goods)

Nature of supply:

  • Movement of goods, whether by the supplier or the recipient or by any other person.

Place of supply:

  • Location of the goods at the time at which the movement of goods terminates for delivery to the recipient

Use ShipTo as the location of goods at the time at which the movement of goods terminates for delivery to the recipient.

No attribute

A seller in Bangalore, Karnataka sells 15 washing machines to a buyer in Mumbai, Maharashtra.

  • ShipFrom: Bangalore, Karnataka
  • ShipTo: Mumbai, Maharashtra
  • Place of supply: Maharashtra
  • AvaTax calculates IGST 

Transport (Movement of goods)

Nature of supply:

  • Goods are delivered by the supplier to a recipient or any other person on the direction of a third person.

Place of supply:

  • Place of the Buyer (Deemed delivery) of the goods.

Use BillTo as the address of the buyer, ShipTo as address of the recipient where the goods are delivered.

No attribute

A buyer in Cuttack, Odisha buys 5 refrigerators from a seller in Pune, Maharashtra. The buyer asks the seller to send the refrigerators to Bhopal, Madhya Pradesh.

  • ShipFrom: Pune, Maharashtra
  • ShipTo: Bhopal, Madhya Pradesh
  • BillTo: Cuttack, Odisha
  • Place of supply: Odisha
  • AvaTax calculates IGST 

No Transport (No movement of goods)

Nature of supply:

  • No movement of goods, either by the supplier or the recipient.

Place of supply:

  • Location of goods at the time of the delivery to the recipient (at the time of transfer of ownership).

Use ShipTo as the location of goods at the time of the delivery to the recipient.

Transport

(None)

A buyer buys headphones from a showroom situated in Ludhiana, Punjab.

  • ShipFrom: Ludhiana, Punjab
  • ShipTo: Ludhiana, Punjab
  • Place of supply: Punjab
  • AvaTax calculates CGST+SGST

No Transport (No movement of goods)

Nature of supply:

  • Goods are assembled or installed at the site.

Place of supply:

  • Place of Assembly or Installation of Goods.

Use ShipTo as the place of assembly or installation of goods.

IsAssemblyOrInstallation 

(True)

A seller in Chennai, Tamil Nadu supplies machinery to a buyer in Surat, Gujarat.The machinery is installed in the factory of Rahul in Chennai, Tamil Nadu.

  • ShipFrom: Chennai, Tamil Nadu
  • ShipTo: Chennai, Tamil Nadu
  • BillTo: Surat, Gujarat
  • Place of supply: Tamil Nadu
  • AvaTax calculates CGST+SGST

 

Scenarios for calculating GST on the sale of services

Calculating GST for services may require additional transaction attributes.

Supply Category

Nature and place of Supply

AvaTax Address Types

Attribute (Value)

Example

Generic rule

Nature of supply:

  • Generic rule.

Place of supply:

  • If the transaction is B2B, place of supply is the location of the recipient.
  • If the transaction is B2C, place of supply is the location of the recipient (if the address is available on record). If the recipient address is not available on record, it's the location of the service provider.

Business to business transactions: Use BillTo as the address of the recipient. ShipTo can be used as address of the recipient if BillTo is not available.

Business to consumer transactions: Use BillTo as the address of the recipient. ShipTo can be used as address of the recipient if BillTo is not available. If BillTo and ShipTo are not available, then AvaTax will consider ShipFrom (address of the service provider) as place of supply and calculate tax accordingly.

SupplyofService 

(Generic)


Business to business example:

A seller in Patna, Bihar provides consultancy services to XYZ Ltd. (a registered entity) in Lucknow, Uttar Pradesh.

  • ShipFrom: Patna, Bihar
  • ShipTo: Lucknow, Uttar Pradesh
  • BillTo: Lucknow, Uttar Pradesh
  • Place of supply: Uttar Pradesh
  • AvaTax calculates IGST


Business to consumer example:

A seller in Patna, Bihar provides consultancy services to an unregistered firm.

  • ShipFrom: Patna, Bihar
  • ShipTo: Not available on record
  • BillTo: Not available on record
  • Place of supply: Bihar
  • AvaTax calculates CGST + SGST
     
Services in relation to immovable property

Nature of supply:
Services including:

  • Direct services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents.
  • Lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by whatever name called, and including a house boat or any other vessel
  • Accommodation in any immovable property for organizing any function including any ancillary services.

Place of supply:

  • If location of property, seller and buyer locations are in India, the place of supply is the place of immovable property.

Use ShipTo as the location of property.

SupplyofService 

(ImmovableProperty)

A seller in Mumbai, Maharashtra provides electrification services to a buyer in Panaji, Goa. The property is located in Pune, Maharashtra.

  • ShipFrom: Mumbai, Maharashtra
  • ShipTo: Pune, Maharashtra
  • BillTo: Panaji, Goa
  • Place of supply: Maharashtra
  • AvaTax calculates CGST+SGST
Performance based services

Nature of supply:

  • Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery.

Place of supply:

  • Place of actual performance of services.

Use ShipTo as the location where services are performed.

SupplyofService 

(PerformanceBased)

A seller in Bangalore, Karnataka provides catering services to Avalara Technologies Private Ltd. for their annual event at the company office in Pune, Maharashtra.

  • ShipFrom: Bangalore, Karnataka
  • ShipTo: Pune, Maharashtra
  • BillTo: Pune, Maharashtra
  • Place of supply: Maharashtra
  • AvaTax calculates IGST
Training and performance appraisal

Nature of supply:

  • Services in relation to training and performance appraisal

Place of supply:

  • For business to business transactions, the location of the recipient.
  • For business to consumer transactions, the location of the performance of service.

Business to business transactions: Use BillTo as the address of the recipient.

Business to consumer transactions: Use ShipTo as the location where services are performed.

SupplyofService 

(TrainingAndPerformanceAppraisal)

Business to business example:

A seller in Ranchi, Jharkhand provides a soft skills training session in Ranchi to the employees of XYZ Ltd. (Registered in Rajasthan).

  • ShipFrom: Ranchi, Jharkhand
  • ShipTo: Ranchi, Jharkhand
  • BillTo: Jaipur, Rajasthan
  • Place of supply: Rajasthan
  • AvaTax calculates IGST


Business to consumer example:

A seller in Ranchi, Jharkhand provides a soft skills training session in Ranchi to a buyer from Lucknow, Uttar Pradesh.

  • ShipFrom: Ranchi, Jharkhand
  • ShipTo: Ranchi, Jharkhand
  • BillTo: Lucknow, Uttar Pradesh
  • Place of supply: Jharkhand
  • AvaTax calculates CGST + SGST
Banking and other financial services

Nature of supply:

  • Banking and other financial services, including stock broking services

Place of supply:

  • Location of the recipient (if the address is available on record).
  • If the recipient address is not on record, it's the location of the service provider.

Use BillTo as the address of the recipient. If BillTo is not available, use ShipTo as the address of the recipient.

If BillTo and ShipTo are not available, AvaTax will consider the ShipFrom (address of the service provider) as the place of supply and calculate tax accordingly.

SupplyofService 

(BankingAndFinancial)

XYZ consultants (P.) Ltd. provides stock broking services in Mumbai, Maharashtra. ABC is the client of XYZ consultants. Per their records, the address of ABC is Pune, Maharashtra.

  • ShipFrom: Mumbai, Maharashtra
  • ShipTo: Pune, Maharashtra
  • BillTo: Pune, Maharashtra
  • Place of supply: Maharashtra
  • AvaTax calculates CGST + SGST

 

  • Was this article helpful?