Section 7 in The Integrated Goods and Services Tax Act, 2017
7. Inter-State supply.
(1)Subject to the provisions of section 10, supply of goods, 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 in the course of inter-State trade or commerce.(2)Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.(3)Subject to the provisions of section 12, supply of 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 services in the course of inter-State trade or commerce.(4)Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.(5)Supply of goods or services or both,-(a)when the supplier is located in India and the place of supply is outside India;(b)to or by a Special Economic Zone developer or a Special Economic Zone unit; or(c)in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.
