Recipient of supply under GST

The definition

Section 2(93) of the CGST Act defines recipient of supply as follows:

• Where consideration is payable, the person who is liable to pay that consideration.
• Where no consideration is payable for goods, the person to whom the goods are delivered or made available, or to whom possession or use is given.
• Where no consideration is payable for services, the person to whom the service is rendered.
• Any reference to a person to whom a supply is made includes an agent acting on behalf of the recipient.

Why it matters

Input tax credit under Section 16 is available only to the recipient, with the invoice in its name and GSTIN. Under reverse charge, the recipient is the person liable to pay tax. And for place of supply of services, the location of the recipient often decides whether IGST or CGST and SGST applies.

Problems arise when an employee pays for a business expense and the invoice is in the employee's name, or when a group company pays for a service used by another. In such cases the GSTIN on the invoice may not match the business that actually uses the supply, and credit can be denied.

Practical tips

Ask suppliers to put your correct legal name, GSTIN and state on every invoice. Check IMS and GSTR-2B to confirm the invoice is reflected against your GSTIN. For shared services in a group, use a proper cross-charge or Input Service Distributor arrangement.

Get it handled for you

Have a GST question or problem? Our chartered accountants can review it for free and tell you the next step. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.