JAIMIN ENGINEERING RULING: GST REGISTRATION DEPENDS ON FIXED ESTABLISHMENT, NOT PROJECT LOCATION

JAIMIN ENGINEERING RULING: GST REGISTRATION DEPENDS ON FIXED ESTABLISHMENT, NOT PROJECT LOCATION

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title : M/s Jaimin Engineering Private Limited

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAW2018-19/07

Date of Judgment/Order- 1st July 2018

IMPORTANT PARAGRAPHS

Para No. 1. Submission of the Applicant:
M/S Jaimin Engineering Private Limited is engaged in construction of Cold storage. GST provisions for registration are covered in Chapter 6 of CGST Act. Section 22 of CGST Act provide for the basic requirement for registration as reproduced below:
Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
Also section 2(71) provide the location of supplier. We can say that the place from where the supply is made will be taken as a location of supplier.
In our case the supply will be made from Gujarat.

Para No. 2. Issues to be decided:
M/S Jaimin Engineering Private Limited is a company incorporated under the Companies Act 1956.1t is engaged in construction of cold storages at various parts of Country. They are expecting to do some construction work in the state of Rajasthan whereas they are located in the state of Gujarat and registered there in GST. As per GST provisions every supplier is required to take registration in each state where he have a place of business. Here they have place of business in Gujarat and are duly registered there. They will be charging IGST on their activity in Rajasthan making it a place of supply. The state share of that IGST will go to the state of Rajasthan as it is the place of supply. The taxpayer believes that he is not required to take registration in the state of Rajasthan.

RULING

A supplier of service will have to register at the location from where he makes Taxable supplies or is supplying Taxable services if his aggregate turnover in a financial year exceeds twenty lakh rupees (ten lakh rupees in any of special category states).
While supplying services if the supplier of services (i.e. applicant who in the given case is a Works Contractor and is registered in State of Gujarat) has any place of business/office in the State of Rajasthan i.e. has a fixed establishment for operation in State of Rajasthan (place where the services are to be provided) then he is required to get himself registered in State of Rajasthan.