24 December 2018
XYZ registered with GST in Maharashtra, have taken service contracts of machine maintenance, under which they depute their service team on sites at different states. At the customers site, the customer is providing accommodation facility in their guest house since the service contract is for a longer duration. 1) Is XYZ required to take GST registration at each site and charge CGST + SGST or 2) They can invoice under Maharashtra Registration by charging IGST?
25 December 2018
XYZ is not having place of business in other states. It is only providing service in other states of its Customers. Hence, XYZ is not required to take registration in different states. XYZ is need to do billing as per your option 2.
25 December 2018
IGST will be applicable, no separate registration is required in the state. If the machine is considered as an immovable property, then according to Section 12 of IGST Act, the place of supply is where the immovable property is located, then CGST & SGST to be levied. The service provider need to take registration in that state.
25 December 2018
Respected Sir, In accordance with my humble opinion the phrase "from where he makes a taxable supply" referred in section 22 of the CGST Act, should not be interpreted in conjunction with "Place of supply", as this would result in very absurd interpretation, specially in case of service industries, for eg. In case of Chartered accountant registered in Jaipur and who take audit assignments in various states, and goes to CESTAT and many more other assignments in different states, then he would be required to take registration in different states.
Hence, in my humble opinion, there is no requirement to take GST registration in different states, simple you can charge IGST.
Thanks and Regards CA Shubham Sharma email- shubham.vnv@gmail.com Contact-9462302922
12 January 2019
Mr.Sharma, please refer the provision, section 7(3) of IGST Act - which says "subject to the provisions of Section 12". For immovable properties, only CGST & SGST to be levied as the revenue should go to the respective State in which such immovable property is situated. If, as above, the machines are considered as immovable property as they may have been earthed, only CGST & SGST are applicable.
13 January 2019
Mr.Chandran, I really beg to differ from your point of view ...becoz ..for the purpose of registration we need to check section 22 of the CGST act ...then for determining ..whether it is a inter state or intra state supply ..we need to check IGST act....Sir, If a person takes a contract of maintenance for machine located in say 29 states .and work is only of two days...then according to ur humble opinion ...he is required to take registration in every state ....Sir registration hi leta reh jaega voh ....business ni kar paega 😀
14 January 2019
Mr.Sharma, this is good to share our thoughts so we share knowledge; Please note that, coming to your points, according to section 22 of CGST Act, it says that every supplier is to take registration where he is liable to take registration. If a person is liable to take registration in a state, he has to take registration according to the situations. Second, the Chapter V of IGST Act determines the place of supply, section 12, determines the place of supply of services where the location of the supplier and recipient in India, in this section, apart from a common determination, there are some special services for which the place of supply is determined in various ways. In this case, if the machine is not considered as an immovable property, then the supplier need not to take registration in that state. Here, I'm talking only about immovable property (if the machinery is considered so).
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