Place of Supply is important to determine:
-Whether the supply is Interstate or Intrastate.
-Resulting to which, Whether SGST/UTGST plus CGST is leviable or IGST is leviable.
If inter state transaction is wrongly treated inter-state or vice-versa and tax paid accordingly, then it can be rectified. However, procedural requirements increase and working capital will get blocked. Therefore, determining Place of supply is of paramount importance.
Source Taxguru
