Section 8 of IGST Act: Intra-State Supply
Section 8 of the Integrated Goods and Services Tax Act, 2017 determines when a supply of goods or services is treated as an intra-State supply. The classification depends mainly on the location of the supplier and the legally determined place of supply, subject to specific statutory exclusions.
Updated: 27 September 2026
Section 8 at a glance
- Goods: generally intra-State when the supplier location and place of supply are in the same State or the same Union territory, subject to Section 10 and the exclusions in Section 8(1).
- Services: generally intra-State when the supplier location and place of supply are in the same State or the same Union territory, subject to Section 12 and the SEZ exclusion in Section 8(2).
- SEZ supplies: supplies to or by a Special Economic Zone developer or unit are not treated as intra-State supplies under Section 8.
- Distinct establishments: the explanations identify situations in which establishments of the same person are treated as establishments of distinct persons for the IGST Act.
Current text of Section 8 - Intra-State supply
Section 8(1). Subject to the provisions of Section 10, a supply of goods is treated as an intra-State supply where the location of the supplier and the place of supply of the goods are in the same State or the same Union territory.
The following supplies of goods are excluded from intra-State treatment:
- supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
- goods imported into India until they cross the customs frontiers of India; and
- supplies made to a tourist referred to in Section 15.
Section 8(2). Subject to the provisions of Section 12, a supply of services is treated as an intra-State supply where the location of the supplier and the place of supply of the services are in the same State or the same Union territory.
However, a supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit is excluded from intra-State supply.
Explanation 1. Establishments are treated as establishments of distinct persons where a person has:
- an establishment in India and another establishment outside India;
- an establishment in one State or Union territory and another establishment outside that State or Union territory; or
- an establishment in a State or Union territory and another establishment registered within that State or Union territory.
Explanation 2. A person carrying on business through a branch, agency or representational office in a territory is treated as having an establishment in that territory.
Meaning of intra-State supply under Section 8
An intra-State supply is not determined merely by where the customer lives or where an invoice is issued. For goods, Section 8 must be read with the applicable place-of-supply rule in Section 10. For services, it must be read with Section 12 where both the supplier and recipient are located in India.
If the supplier location and the resulting place of supply fall in the same State or same Union territory, Section 8 ordinarily classifies the transaction as intra-State, unless one of its express exclusions applies. The nature-of-supply rules should also be read with Section 7 on inter-State supply.
Section 8(1): Intra-State supply of goods
For goods, the first step is to identify the location of the supplier and then determine the place of supply under the relevant IGST Act provision. When both are in the same State or same Union territory, the supply normally falls within Section 8(1).
The proviso creates three important exclusions. Supplies to or by an SEZ developer or SEZ unit are excluded. Imported goods remain outside intra-State treatment until they cross the customs frontiers of India. Supplies made to the tourist referred to in Section 15 are also excluded.
Section 8(2): Intra-State supply of services
For services, Section 8(2) operates subject to Section 12. If the location of the supplier and the place of supply of services are in the same State or the same Union territory, the transaction is ordinarily an intra-State supply.
The proviso excludes services supplied to or by an SEZ developer or SEZ unit. Accordingly, a same-State location by itself does not convert an SEZ-related supply into an intra-State supply.
Distinct establishments under Explanation 1
Explanation 1 is important where the same person operates through more than one establishment. It treats the specified establishments as establishments of distinct persons. The provision covers establishments in India and outside India, establishments in different States or Union territories, and separately registered establishments within the same State or Union territory.
The 2018 amendment removed the former requirement that the other establishment registered within the same State or Union territory be a "business vertical". This change has been effective since 1 February 2019.
Branch, agency and representational office
Explanation 2 provides that a person carrying on business through a branch, agency or representational office in a territory is treated as having an establishment in that territory. This rule helps identify the relevant establishment when applying the IGST Act's location and nature-of-supply provisions.
Practical classification guide
| Situation | Section 8 treatment | Related provision |
|---|---|---|
| Supplier and place of supply of goods are in the same State or same Union territory | Normally intra-State, unless an exclusion applies | Section 10 |
| Supplier and place of supply of services are in the same State or same Union territory | Normally intra-State, unless the SEZ exclusion applies | Section 12 |
| Supply to or by an SEZ developer or SEZ unit | Excluded from intra-State supply | Section 7 |
| Imported goods before crossing customs frontiers of India | Excluded from intra-State supply | Section 7 |
Related IGST Act provisions
For a complete determination of the nature of supply, also refer to Section 7 - Inter-State supply, Section 9 - Supplies in territorial waters, Section 10 - Place of supply of goods, Section 11 - Imported or exported goods, Section 12 - Place of supply of services where supplier and recipient are in India, and Section 13 - Place of supply where supplier or recipient is outside India.
Integrated Goods and Services Tax Act 2017
Chapter IV - Determination of nature of supply: Section 7 - Inter-State supply | Section 8 - Intra-State supply | Section 9 - Supplies in territorial waters.
Chapter V - Place of supply: Section 10 | Section 11 | Section 12 | Section 13 | Section 14.
This page is intended as a statutory reference and general explanation. Classification of a particular transaction depends on its facts and the applicable place-of-supply provisions.