No need for multiple GST registrations
In what would facilitate execution of work contracts by companies away from their registered place of operation, the Karnataka Authority of Advance Ruling
image for illustrative purpose
New Delhi: In what would facilitate execution of work contracts by companies away from their registered place of operation, the Karnataka Authority of Advance Ruling (AAR) has ruled that no separate GST registration in Karnataka is required for the supply of service by companies and they can raise invoice by charging IGST from their registered offices.
The clarity would prevent companies from getting multiple GST registrations in different States if supply is merely for execution of a contract and the entity has no intention to set up permanent establishment outside their registered office. The KAAR order came on clarity on taxation sought by GEW (India) Pvt. Ltd.
This company got a sub-contract work from M/s L86T, claimed to be a works contract, for erecting steel structure cast and bolted on the ground in the civil foundation, at the site at Karwar, Karnataka. The scope of the contract involved procurement of structural steel from approved suppliers, fabrication to be done at GEW India factory premises at Noida, and transportation of material, and erection at Karvar site.
The applicant received the work order to execute the contract at Karwar in Karnataka.
