No Separate GST registration is required to be obtained in the state in which the works contract service has been awarded

Facts: The Applicant has sought an advance ruling on, whether the Applicant registered at Noida, Uttar Pradesh is required to take registration in the state of Karnataka for execution of works contract issued by M/s L&T, Karnataka at Karnataka.

AAR Observations: The Karnataka AAR observed that the Applicant is neither having and nor intending to have any establishment in Karnataka, therefore the location of the supplier in the present case would be the place of the business of the Applicant which is Noida, UP.

Further observed that, as per Section 12(3) of the Integrated Goods and Services Act, 2017, service provided by the Applicant in relation to immovable property by way of grant of right to use immovable property or for carrying out or co-ordination of construction work or any ancillary services, the place of supply of services shall be location of immovable property i.e. Karnataka.

Held: The Karnataka AAR held that as the location of the supplier, Noida, Uttar Pradesh and place of supply of service, Karnataka are at two different states so as per Section 7(3) of the IGST Act the supply of service will be considered as inter-state supply and accordingly IGST will be charged.

Held that, the Applicant is not required to take separate registration in Karnataka for the supply of services and can raise the invoice by charging IGST from their registered office at Noida, Uttar Pradesh, with the place of supply as Karnataka.

Further held that, the Applicant are not entitled to take Input Service Distributor (“ISD”) registration for the site at which they are delivering service as they are not having nor intending to have any establishment at the site i.e., Karnataka.

To read the complete judgment 2021 Taxo.online 1421