TMI Blog2021 (11) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... be raised and the HSN of the goods moved and the value of such goods moved needs to be recorded in such e-waybill. Whether the applicant is required to be registered in the state of Karnataka for execution of the work order which was issued by M/s L T, Karnataka, on the applicant's premises registered at Noida, UP, from where the applicant raises the invoice? - HELD THAT:- In the instant case, the applicant has obtained registration for the premises located at Noida, UP and hence the location of the supplier of services is the place of business of the applicant. It is also pertinent to note that the applicant has no fixed establishment in the State of Karnataka as on date. Section 12 of the IGST Act 2017 determines the place of supply and specifically Section 12 (3) of the IGST Act is relevant to the impugned transaction determines the place of supply of services directly in relation to immovable property in respect of any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work or any ancillary services shall be the location at which the immovable property is located or intended to be located and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01301, having registered corporate office at G 301 to 305, Magapatta Mega Centre, Pune, Maharashtra - 411 028. An unregistered person have filed an application for Advance Ruling, vide user id 292100000297ARS, under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act, KGST Act. 2. The Applicant is a company, got a sub-contract work from M/s L T, claimed to be a works contract, for erecting steel structure casted and bolted on ground in the civil foundation, at the site at Karwar, Karnataka. The scope of the contract involves (i) Procurement of structural steel from approved suppliers such as SAIL/JSPL/Tata (ii) Fabrication at GEW India factory premises, at NOIDA, as per the drawings (iii) Transportation of material and (iv) erection at Karwar site. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: 3.1 (a) When goods which requires movement from a different place to the work sites forming part of works contract and should we use or mention SAC as ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that we mean registering as regular or ISD we seek your opinion as to distribute the input tax credit by cross charging the input tax being received from supplier of services by obtaining regular registration which otherwise NOIDA office bearing GSTIN with the same PAN are the actual recipient of services who are actually the supplier of services to L T as per the work order # EL573W0D1000105 dated 23.06.2021 rather than taking an ISD registration. 4. Admissibility of the application: The applicant, through three questions, at column 13 of the application, sought advance ruling in respect of the issues i.e. (i) classification of services and (iv) whether the applicant is required to be registered and hence the application is admissible under Section 97(2)(a) (f) of the CGST Act 2017 respectively. 5. BRIEF FACTS OF THE CASE: The applicant furnishes the following facts relevant to the issue: 5.1 The applicant received a work order from L T (Larsen Toubro) to execute the works contract at Karwar job address LE200893-Seabird package MWC04-Larsen 8v Toubro Ltd., Inside Naval base, Karwar, Near Manzi' Creek, Chendia PO, Uttara Kannada district, Karwar, Karnataka-581 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to M/s Larsen Toubro, for the work to be executed at Karwar at the place where the immovable property is situated. The applicant for the said purpose fabricating the required steel structure at their premises at Noida and transport the same to Karwar for installation. The applicant further submits that, as per the work order, they have to raise invoices in the name of L T, charging IGST @ 12%, classifying under SC 995416 on availing concessional rate of tax, in terms of Notification NO.11/2017-Central Tax (Rate) dated 28.06.2017 vis a vis Notification No.8/2017-IGST (Rate) dated 28.06.2017 as amended, which may be disputed by the check post authorities for an incorrect classification incorrect rate of tax and may become the subject matter of dispute on road and accordingly the vehicles may be intercepted and may end up in litigation. The applicant, quoting above, requested for ruling to accommodate the movement in supply of goods before installation and to charge the rate of tax as applicable to the works contract classified as service and what has to be mentioned in the invoice whether SAC or HSN. 6.2 The applicant, with regard to the second question submits their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red which is other than the place where the actual services are provided. The applicant, in view of the above, states that the goods are produced and the services are performed; there is a time lag between production and consumption of goods where as production and consumption of services occur simultaneously and submits their view that Section 22 of the CGST Act 2017 read with KGST Act 2017 demands registration, for a person in relation to immovable property services, to obtain from where he is executing and delivering rather than the place where he is registered in some other state or UT. Further we are not able to buy the concept of completing a service at one place and declaring it to be delivered from another place, especially an immovable property related services just because the work order was issued on another state where the service provider is registered or having a place of business. The applicant, in view of the above, requests to enlighten them on the actual scenario on what line the GST Act was implemented and the consequences if a person fails to register in the state in which he executes the works contract as for as the revenue loss to the concerned state is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant the submissions made by their learned representative during the time of hearing. 10. The applicant, a sub-contractor, having GST registration at Noida, Uttar Pradesh got a work order from M/s L T, Karnataka for erection and installation of a steel structure, after fabrication of the same at their Noida premises, which is to be casted and bolted on the ground in the civil foundation. The applicant in this regard sought advance ruling in respect of the questions mentioned at para 3 supra. 11. The applicant though sought advance ruling in respect of three questions. We proceed to consider one question at a time and discuss. The first question is with regard to the HSN or SAC that need to be mentioned while transporting the steel structures fabricated at their Noida premises, to the work site at Karwar, as the L T (main contractor) has directed them t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the foregoing the authority refrain from answering this question at it is not within the jurisdiction of this authority. 11.4 However, it is pertinent to note that the invoice is issued for the supply of goods or services or both and when it is mandated to mention the HSN in the invoice, the HSN covering the transaction, in this case the supply of services, needs to be mentioned. But in case of e-waybill, the movement is of goods and hence the delivery note causing the movement of goods needs to be raised and the HSN of the goods moved and the value of such goods moved needs to be recorded in such e-waybill. 12. The second question, in respect of which the applicant sought advance ruling, is whether the applicant is required to be registered in the state of Karnataka for execution of the work order which was issued by M/s L T, Karnataka, on the applicant's premises registered at Noida, UP, from where the applicant raises the invoice. 12.1 In this regard a question was raised during hearing that whether the applicant is planning to have an office in Karnataka . The applicant answered that they would like to have a house for stay purposes, which can be for their residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, where 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; In the instant case, the applicant has obtained registration for the premises located at Noida, UP and hence the location of the supplier of services is the place of business of the applicant. It is also pertinent to note that the applicant has no fixed establishment in the State of Karnataka as on date. 14. Section 12 of the IGST Act 2017 determines the place of supply and specifically Section 12 (3) of the IGST Act is relevant to the impugned transaction determines the place of supply of services directly in relation to immovable property in respect of any service provided by way of grant of rights to use immovable property or for carrying out or co-ordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act 2017, wherein the Input Service Distributor has been defined to mean (61) Input Service Distributor: means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office; 18. Section 24 of the CGST Act 2017 deals with compulsory registration in certain cases and stipulates, under sub-section (viii), that Notwithstanding anything contained in section 22 (1) of the CGST Act 2017, the Input Service Distributor, whether or not separately registered under the CGST Act, shall be required to be registered under the CGST Act 2017. Further Section 25 of the Act prescribes certain procedure for registration and specifically sub-section (1) stipulates that Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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