# Inter-State and Intra-State Supply [Sections 7 & 8 of IGST Act]

Once you know the Location of Supplier (LoS) and the Place of Supply (POS), the classification is mechanical.

## Intra-State Supply [Section 8]

A supply is intra-State if:

Location of Supplier AND Place of Supply are in the same State or the same Union Territory.

Tax: CGST + SGST (or CGST + UTGST in UT).

## Inter-State Supply [Section 7]

A supply is inter-State if Location of Supplier and Place of Supply are in:

Two different States, OR
Two different UTs, OR
One State and one UT.

Tax: IGST.

## Residual rule (important catch-all)

If a supply is made in the taxable territory but does not qualify as intra-State, it shall be treated as inter-State, regardless of the above tests. This residuary clause closes the gap for unusual cases.

Worked example

### Example 1

Example — Intra-State

LoS = Jaipur (Rajasthan). POS = Udaipur (Rajasthan). Both in Rajasthan → Intra-State → CGST + SGST.

### Example 2

Example — Inter-State across States

LoS = Delhi. POS = Mumbai (Maharashtra). Two different States → Inter-State → IGST.

### Example 3

Example — State + UT

LoS = Chennai (Tamil Nadu). POS = Puducherry (UT). One State + one UT → Inter-State → IGST.

⚠️ Common exam mistakes

Forgetting that a supply between two different UTs is inter-State (e.g., Chandigarh and Daman).
Looking at where the goods physically move, instead of comparing Location of Supplier with the legally determined Place of Supply.
Ignoring the residuary clause for edge cases that don't fit intra-State.

Bare-Act text Sections 7 & 8 · IGST Act, 2017 · click to expand

Section 7: Supply of goods or 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 goods or services in the course of inter-State trade or commerce. Section 8: Supply of goods or services where the location of the supplier and the place of supply of goods or services are in the same State or same Union territory shall be treated as intra-State supply.

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Inter-State vs Intra-State Supply [Sections 7 & 8 IGST Act]

Worked example

⚠️ Common exam mistakes