Circular No. 242/36/2024-GST dt. 31st December 2024

Clarification regarding the place of supply for online services provided to unregistered recipients

It mandates that suppliers, including electronic commerce operators, must record the recipient’s state on tax invoices for such services, regardless of transaction value. This ensures the place of supply is determined as the recipient’s location, facilitating accurate tax allocation to the appropriate state. 

Non-compliance may result in penalties under section 122(3)(e) of the CGST Act.

Source : https://taxinformation.cbic.gov.in/view-pdf/1003256/ENG/Circulars