2026-VIL-06-AAAR
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SGST AAAR

GST – Odisha AAAR - Place of Business, Fixed Establishment - Appellant is a service provider engaged in trading of analytical and laboratory equipment and provides repair and maintenance services under Annual Maintenance Contract (AMC) and Comprehensive Maintenance Contract (CMC) plans. The services are provided through Field Service Engineers (FSEs) deployed in Odisha, while all contracts, invoicing, and inventory management are handled by the appellant's Head Office (HO) in Maharashtra - Whether the repair and maintenance services provided by the Head Office through Field Service Engineer under Annual Maintenance Contract or Comprehensive Maintenance Contracts with the Customers in Odisha constitute a ‘Place of Business’ in Odisha under Section 2(85) of the CGST Act, 2017 – HELD - The location of supplier from where it runs the business is vital while determining ‘Place of Business’ of an entity under Section 2(85) of CGST Act - From a combined reading of the definition of “location of Services” under Section 2(71) of the CGST Act and “Place of Business” Section 2(85) of the CGST Act, it can be inferred that location of services means the location of such place of business or fixed establishment from where the supply is made - The location of the supplier, which is the HO in Maharashtra, is the relevant factor in determining the 'place of business' under the GST law. All the agreements, invoicing, and financial transactions are carried out by the HO, and the presence of FSEs in Odisha is merely for operational efficiency and does not create a separate place of business in Odisha - Further, the FSEs of the Appellant Company provide service to the customers on the direction of the HO and there is no separate administrative set up of the Appellant Company in Odisha. Thus, the location of the supplier, in this case is in Maharashtra and not in Odisha – Ordered accordingly - Whether the temporary storage of spare parts and tool kits at the appellant's location in Odisha constitute a 'place of business' under Section 2(85) or a 'fixed establishment' under Section 2(50) of the CGST Act – HELD - The storage of spare parts and tool kits by the FSEs in Odisha is temporary and incidental in nature, and not indicative of the appellant 'ordinarily carrying on business' or maintaining a warehouse or godown in Odisha - The appellant is a supplier of service and provides post sale service to their clients. The stock which is referred to by the Appellant are the leftover spare parts retained by the FSEs after service visit, more specifically the leftover spare parts under CMC plan. Therefore, the goods retained by the FSE of the appellant are not trading rather incidental in nature. This arrangement is solely to ensure timely service to customers and does not qualify as a 'fixed establishment' under Section 2(50) of the CGST Act - Whether the appellant is required to obtain a separate GST registration in Odisha solely on account of the activities performed in Odisha – HELD - All transactions of the Appellant are made from their Head Office located in Maharashtra. No separate transactions are made from the Appellant Odisha. All invoices are issued from their HO of the Appellant. The services provided by the Appellant Company to the Customers of Odisha are made through their FSEs placed in Odisha. In view of above, the Appellant does not require any separate registration in Odisha under the provisions of Section 22 or 24 of CGST Act, 2017.
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