30 August 2018
We are having a firm registered in rajasthan providing service of soil removal from construction sites. We carry out our work from various states. We need to purchase heavy machinery for carrying out work. I need to clear following doubts: 1. Do we need to obtain GST registration in each of the state we provide service to ? 2. How can we utilize input on heavy machinery purchased under rajasthan GSTIN for services provided by same machinery in different states ?
30 August 2018
In case your total aggregate turnover (total from all the sate ) is more tan 20 Lakhs ,you need to take registration in each of the state from where you make taxable supplies.( Section 22 of GST Act 2017) You can take credit for purchase of machinery in Rajasthan only . 100% of tax credit is allowed in case of capital goods purchase (Rule 43 of the Act ). Direct connection is not required between the capital goods and output supply . Input Tax in respect of purchase of machinery will be credited to electronic credit ledger . The useful life of capital good shall be taken as five year from the date of invoice ( Rule 43(c))
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