What is Place of Supply?
Place of Supply in ERPNext determines whether a transaction attracts CGST+SGST (intra-state) or IGST (inter-state) based on the destination state and supply type.
Place of Supply Logic
ERPNext auto-populates Place of Supply from the shipping address or customer billing address state. If the customer state matches your company's state, CGST+SGST applies. If different, IGST applies. For exports and SEZ, zero-rated or no GST applies regardless of address.
Overriding Place of Supply
For services where place of supply differs from the billing address (e.g., software services, banking), you can manually select the Place of Supply on the invoice. ERPNext re-calculates the applicable tax rate based on the updated state code.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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