KA AAR: No Separate GST Registration for Infrastructure Project

Karnataka bench of the GST Authority for Advance Rulings (AAR) ruled that a distinguished GST registration is not needed in the state the place of supply through the subcontractor who implements the infrastructure project. Towards simple executing of the business in its ruling, the bench specified that the subordinate can raise the invoice by charging integrated goods and service tax (IGST) from its office in Noida Uttar Pradesh. 

IGST is imposed towards the case of the interstate supply of goods and services. AAR who furnishes the laws poses strong value. The tax practitioner mentioned that if the said law has been applied all across India then it shall run in a long time in diminishing the costs both the cost of registration under GST as well as the additional cost of administration for the business entities. 

While on the negative side the AAR has said that in the absence of an office in Karnataka, the subcontractor will not able to enrol as an input service distributor. The mentioned registration was needed to claim for the ITC with respect to the goods or services that are being obtained from the suppliers on the site and provides the mentioned credit onward to its Noida enrollment. 

Towards a similar case GEW India is a private ltd company that poses a unit in Noida and its registered office is in Pune (Maharashtra) who revise a work order via Larsen and Toubro to implement the works contract towards the naval base at Karwar in Karnataka. It subjected that the composite supply of goods and services like installation of the steel structure for the purpose of harbouring the ships. The steel was produced in its Noida unit and installation was on-site. 

GEW India mentioned that they seem to furnish the accommodation in Karnataka towards the resident engineer and the other people who might go on the worksite, however, they do not pose any office or authority staff. AAR mentioned that the applicant company need only 1 principal place of business Nodia towards which the GST registration is received. Hence there was no need for the separate registration in Karnataka to implement the contract.