Section 3 - Supplies of goods and/or services in the course of inter-State trade or commerce

Inter-State supply: territorial location of supplier and place of supply determines inter-state character and special deeming rules apply.

Inter-State supply arises when the supplier's location and the place of supply are in different States for both goods and services. Deeming rules treat imports until customs frontier crossing, services imported into India, supplies from an Indian supplier to an outside place, and supplies to or by SEZ developers or units as inter-State. Any taxable supply in the taxable territory that is not intra-State and not otherwise covered is also deemed inter-State.