diff --git a/addons/l10n_in/data/res_country_state_data.xml b/addons/l10n_in/data/res_country_state_data.xml
index 55412d1f8c7..5b996c36923 100644
--- a/addons/l10n_in/data/res_country_state_data.xml
+++ b/addons/l10n_in/data/res_country_state_data.xml
@@ -8,6 +8,13 @@
         <field name="l10n_in_tin">97</field>
     </record>
 
+    <record id="state_in_oc" model="res.country.state">
+        <field name="name">Other Country</field>
+        <field name="code">IN_OC</field>
+        <field name="country_id" ref="base.in"/>
+        <field name="l10n_in_tin">96</field>
+    </record>
+
     <record id="base.state_in_an" model="res.country.state">
         <field name="l10n_in_tin">35</field>
     </record>
diff --git a/addons/l10n_in/models/account_invoice.py b/addons/l10n_in/models/account_invoice.py
index 5670a903b40..4d312808418 100644
--- a/addons/l10n_in/models/account_invoice.py
+++ b/addons/l10n_in/models/account_invoice.py
@@ -19,7 +19,7 @@ class AccountMove(models.Model):
             ('deemed_export', 'Deemed Export'),
             ('uin_holders', 'UIN Holders'),
         ], string="GST Treatment", compute="_compute_l10n_in_gst_treatment", store=True, readonly=False, copy=True)
-    l10n_in_state_id = fields.Many2one('res.country.state', string="Location of supply")
+    l10n_in_state_id = fields.Many2one('res.country.state', string="Place of supply", compute="_compute_l10n_in_state_id", store=True, readonly=False)
     l10n_in_gstin = fields.Char(string="GSTIN")
     # For Export invoice this data is need in GSTR report
     l10n_in_shipping_bill_number = fields.Char('Shipping bill number', readonly=True, states={'draft': [('readonly', False)]})
@@ -37,17 +37,19 @@ class AccountMove(models.Model):
         for record in self:
             record.l10n_in_gst_treatment = record.partner_id.l10n_in_gst_treatment
 
-    @api.model
-    def _l10n_in_get_indian_state(self, partner):
-        """In tax return filing, If customer is not Indian in that case place of supply is must set to Other Territory.
-        So we set Other Territory in l10n_in_state_id when customer(partner) is not Indian
-        Also we raise if state is not set in Indian customer.
-        State is big role under GST because tax type is depend on.for more information check this https://www.cbic.gov.in/resources//htdocs-cbec/gst/Integrated%20goods%20&%20Services.pdf"""
-        if partner.country_id and partner.country_id.code == 'IN' and not partner.state_id:
-            raise ValidationError(_("State is missing from address in '%s'. First set state after post this invoice again.", partner.name))
-        elif partner.country_id and partner.country_id.code != 'IN':
-            return self.env.ref('l10n_in.state_in_ot')
-        return partner.state_id
+    @api.depends('partner_id')
+    def _compute_l10n_in_state_id(self):
+        for move in self:
+            if move.country_code == 'IN':
+                country_code = move.partner_id.country_id.code
+                if country_code == 'IN':
+                    move.l10n_in_state_id = move.partner_id.state_id
+                elif country_code:
+                    move.l10n_in_state_id = self.env.ref('l10n_in.state_in_oc', raise_if_not_found=False)
+                else:
+                    move.l10n_in_state_id = move.company_id.state_id
+            else:
+                move.l10n_in_state_id = False
 
     def _post(self, soft=True):
         """Use journal type to define document type because not miss state in any entry including POS entry"""
@@ -66,9 +68,6 @@ class AccountMove(models.Model):
                     "views": [[self.env.ref("base.view_company_form").id, "form"]],
                 }
                 raise RedirectWarning(msg, action, _('Go to Company configuration'))
-            elif move.journal_id.type == 'purchase':
-                move.l10n_in_state_id = move.company_id.state_id
-
             move.l10n_in_gstin = move.partner_id.vat
             if not move.l10n_in_gstin and move.l10n_in_gst_treatment in ['regular', 'composition', 'special_economic_zone', 'deemed_export']:
                 raise ValidationError(_(
@@ -77,11 +76,6 @@ class AccountMove(models.Model):
                     partner_id=move.partner_id.id,
                     name=gst_treatment_name_mapping.get(move.l10n_in_gst_treatment)
                 ))
-            if move.journal_id.type == 'sale':
-                move.l10n_in_state_id = self._l10n_in_get_indian_state(move.partner_id)
-                #still state is not set then assumed that transaction is local like PoS so set state of company
-                if not move.l10n_in_state_id:
-                    move.l10n_in_state_id = move.company_id.state_id
         return posted
 
     def _l10n_in_get_warehouse_address(self):
diff --git a/addons/l10n_in/views/account_invoice_views.xml b/addons/l10n_in/views/account_invoice_views.xml
index 91e3c921f12..d9aff6e1de8 100644
--- a/addons/l10n_in/views/account_invoice_views.xml
+++ b/addons/l10n_in/views/account_invoice_views.xml
@@ -7,6 +7,8 @@
         <field name="arch" type="xml">
             <xpath expr="//field[@name='ref']" position="after">
                 <field name="country_code" invisible="1"/>
+                <field name="l10n_in_state_id"
+                    attrs="{'invisible': ['|', ('country_code', '!=', 'IN'), ('move_type', '=', 'entry')], 'required': [('country_code', '=', 'IN'), ('move_type', '!=', 'entry')], 'readonly': [('state', '!=', 'draft')]}"/>
                 <field name="l10n_in_gst_treatment"
                     attrs="{'invisible': ['|', ('country_code', '!=', 'IN'), ('move_type', '=', 'entry')], 'required': [('country_code', '=', 'IN'), ('move_type', '!=', 'entry')], 'readonly': [('state', '!=', 'draft')]}"/>
             </xpath>
diff --git a/addons/l10n_in/views/report_invoice.xml b/addons/l10n_in/views/report_invoice.xml
index b05e4a2a883..8fac8b247c8 100644
--- a/addons/l10n_in/views/report_invoice.xml
+++ b/addons/l10n_in/views/report_invoice.xml
@@ -6,12 +6,7 @@
         </xpath>
         <xpath expr="//t[@t-set='address']" position="inside">
             <t t-if="o.company_id.account_fiscal_country_id.code == 'IN' and o.l10n_in_state_id" class="mt16">
-                <t t-if="o.move_type in ('in_invoice', 'in_refund')">
-                    Destination of supply: <span t-out="o.l10n_in_state_id.name"/>
-                </t>
-                <t t-if="o.move_type in ('out_invoice', 'out_refund')">
-                    Place of supply: <span t-out="o.l10n_in_state_id.name"/>
-                </t>
+                Place of supply: <span t-esc="o.l10n_in_state_id.name"/>
             </t>
         </xpath>
         <xpath expr="//div[@t-if='not is_html_empty(o.narration)']" position="before">