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Registration Requirement

Anshul (nothing) (103 Points)

28 February 2019

An electricaland instrument engineer who usually get contract for related works registered in Rajasthan and providing services but now he got a contract in a company located in Punjab so whether he has to take registration there in Punjab also or he can raise bill from Rajasthan where he is registered and charge igst.contract is for 4 months.and he has to present there in Punjab plant to complete his contract.?

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13 Replies

Pankhuri Agrawal (Chartered Accountant) (412 Points)
Replied 28 February 2019

He has to get a separate registration

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 February 2019

NO NEED OF TAKING SEPARATE REGISTRATION IN GST TO PROVIDE SERVICES LIKE WORKS CONTRACT TO ANY OTHER STATE IN INDIA.

Section 22 Of The ACT Reads As '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,

PLEASE NOTE FROM WHERE....MEANS WHERE HE IS REGISTERED"

Hence it means if you are registered in Rajasthan cannot can provide services from Rajasthan to Punjab

Under GST Regime, Works Contract Is Covered Under The Definition Of Service And Which Also Can Be Provided Directly From Rajasthan To Anywhere In The Country.

There is AAR judgement also in this regard ,.. which can be refer

ADVANCE RULING
M/s JAIMIN ENGINEERING PRIVATE LIMITED

GST – Rajasthan AAR – applicant are expecting to do certain construction work in the state of Rajasthan whereas they are located in the state of Gujarat and registered there in GST – whether they are required to take registration in the state of Rajasthan – HELD - 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

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 01 March 2019

***Hence it means if you are registered in Rajasthan you can supply services from Rajasthan to Punjab by charging IGST & no need get registered in Punjab

1 Like

Sajal Mandal (294 Points)
Replied 01 March 2019

He should take registered under casual taxable person in punjab

Anshul (nothing) (103 Points)
Replied 01 March 2019

casual taxable person's registration valid only for maximum 90 days and here in my case period is uncertain may be 4 month six month dont know how many days it will take to complete the work.

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subhagan sreerangam (7040 Points)
Replied 01 March 2019

thank you and congratulations

Anshul (nothing) (103 Points)
Replied 01 March 2019

i m agreed with pankaj rawat sir and also i have read the advance ruling but then why there is concept of CTP. in my case CTP'S provision applicable or not and applicable then should i take registration as CTP?

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 01 March 2019

The ruling which you have provided says otherwise

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 01 March 2019

Dear Anshul
CTP options is available ,... but can afford to go for CTP Registration.,,, means you have to deposit Advance GST on estimated Tax liability ... now let's suppose You got the contract of Rs 1crore, you have to Deposit the 18lac GST in advance.
2ndly CTP Registration is valid till 90 Days , & if you work contract is not finished with in 90 days ......

Hence when you have the Option to Supply you services from your state anywhere in India by charging IGST , then don't look for any other Options.