This circular provides clarification on compliance with rule 46(n) of the CGST Rules, 2017 while issuing tax invoices for inter-State supply of goods or services.

The circular highlights that certain registered persons, particularly in sectors such as banking, insurance and telecom, were not mentioning the place of supply along with the name of the State in tax invoices for inter-State supplies, despite this being a mandatory requirement under rule 46(n) of the CGST Rules.

It is clarified that GST being a destination-based consumption tax, it is essential to clearly identify the place of supply so that the tax revenue accrues to the appropriate State. Accordingly, all registered persons making inter-State supplies are required to explicitly mention the place of supply along with the name of the State in the tax invoice.

Taxpayers are advised to determine the place of supply in accordance with sections 10 and 12 of the IGST Act for goods and services respectively. Non-compliance with these invoicing requirements may attract penal action under sections 122 or 125 of the CGST Act.

This clarification aims to ensure correct tax attribution and uniform compliance with invoicing provisions across field formations.