Place of Supply in different states in the case of Works Contract
By: – CASeetharaman KC
Goods and Services Tax – GST
Dated:- 4-7-2017<\/p>\n
The impact of various provisions of GST Law becomes more complex in the dimensions which they create as one discusses these provisions. For instance, whether a person who is doing works contract in various states requires registration in all those states? The answer could be as follows:
\n * If a person is registered in a state say in Maharashtra and he is given works contracts by his client in four different states then it would obviously be very uneconomical for him to take all the things required by him for executing the works contract from his registered address in Maharashtra
\n * He would invariably be purchasing most of his inputs locally from the state in which the works contract is executed and would therefore be unable to take input credit unless he has a local registration
\n * The question which now arises is whether the purchas<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n strued as Maharashtra and therefore could be interpreted as an Interstate sale. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nd the place of supply of such goods shall be the principal place of business of such person; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Place of Supply in different states in the case of Works ContractBy: – CASeetharaman KCGoods and Services Tax – GSTDated:- 4-7-2017 The impact of various provisions of GST Law becomes more complex in the dimensions which they create as one discusses these provisions. For instance, whether a person who is doing works contract in various … Continue reading “Place of Supply in different states in the case of Works Contract”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-5797","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/5797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5797"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/5797\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n * Now going further, if this is treated as an interstate sale then an IGST invoice would have to be raised on the recipient at his Maharashtra address for which he would be eligible to take input credit and the recipient could further do the billing for the works contract from Maharashtra by means of an IGST invoice on his client in Kerala
\n * Now if suppose the registered office of the awarder company is also in Maharashtra and it asks the contractor to bill everything on its corporate address in Mumbai irrespective of where the work is actually undertaken then what happens? Would it mean that all these contracts would be billed as local supply of services by the contractor?
\nThe dimensions of reasoning could go to great extents and only time will tell which interpretation would withstand the test of time
\n Reply By Pralhad Jadhav as =
\nIn case of supply of goods to a works contractor, the provisions of <\/p>\n
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\nThe above section actually says that :
\n * .Where a Works contractor (third person) who is located in one state (say Kerala) who is awarded a works contract in another state (say Karnataka) and if such works contractor instructs a supplier of goods in that state to deliver specified goods to the awarder's premises then it would be deemed that such goods have been received by the Works Contractor and the place of supply would be the principal place of business of such person i.e Kerala, which would make it an IGST sale and would be chargeable to IGST.
\n * Again as per Section 12 (3) of the IGST Act, when the Works Contractor from Kerala executes the works contract say interior decoration contract in Karnataka by using the materials already delivered at site and providing labour \/service by himself the place of supply of such service would be the location of the immovable property which is <\/p>\n
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