Case Analysis of GST cases, Study notes of Law

Download Case Analysis of GST cases and more Study notes Law in PDF only on Docsity! [2018] 97 taxmann.com 195 (AAR - RAJASTHAN)/[2018] 69 GST 876 (AAR - RAJASTHAN)/[2018] 17 GSTL 33 (AAR - RAJASTHAN)[20-07-2018] CGST : A supplier of service will have to register at 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) IGST : Location of works contractor shall remain to be State where his principal place of business is registered (unless he has established his office/establishment at place where services are supplied) ■■■ [2018] 97 taxmann.com 195 (AAR- RAJASTHAN) AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN Jaimin Engineering (P.) Ltd., In re NITIN WAPA AND SUDHIR SHARMA, MEMBER ADVANCE RULING NO. RAJ/AAR/2018-19/07 F.NO.IV(4)7/AAR/RAJ/2018-19/33-35 JULY 20, 2018 Section 22 of the Central Goods and Services Tax Act, 2017 - Registration - Persons liable for (NR) - Whether a supplier of service will have to register at 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) - Held, yes - Applicant-works contractor is engaged in construction of cold storage - Applicants are expecting to do some construction work in State of Rajasthan whereas they are located in State of Gujarat and registered there - Whether while supplying services if supplier of services i.e. applicant who is registered in State of Gujarat, has any place of business/office in State of Rajasthan i.e. has a fixed establishment for operation in State of Rajasthan (place where services are to be provided) then he is required to get himself registered in State of Rajasthan - Held, yes [Para 4] Section 2(15) of the Integrated Goods and Services Tax Act, 2017 - Supplier of services, location of - Whether location of works contractor shall remain to be State where his principal place of business is registered (unless he has established his office/establishment at place where services are supplied) - Held, yes [Para 4] FACTS ■ Applicant-works contractor is engaged in construction of Cold storage. Applicants 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 they have a place of business. In instant case, 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. HELD ■ The location of the works contractor shall remain to be the State where his principal place of business is registered (unless he has established his office/establishment in the place where the services are supplied). ■ As per section 12(3)(a) of IGST Act, 2017 in case of Works building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract." As per Para 6(a) of Schedule II to the CGST Act, 2017, works contracts as defined in section 2(119) of the CGST Act, 2017 shall be treated as a supply of services. Thus, there is a clear demarcation of a works contract as a supply of service under GST Act. As per Section 2(15) of the Integrated Goods and Services Tax Act, 2017, the term "location of the supplier of services" means,— (a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; (b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier The Location of the Works Contractor shall remain to be the state where his principal place of business is registered (unless he has established his office/establishment in the place where the services are supplied) As per section 12(3)(a) of IGST Act, 2017 in case of Works Contract Services Place of supply shall be the location at which the immovable property (construction site) is located. Section 22(1) of CGST Act, 2017 defines the liability for registration 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, 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." In view of the foregoing, we rule as under: 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. shruti