2026-VIL-28-AAR
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SGST Advance Ruling Authority

GST – Tamil Nadu AAR - Fixed establishment, Requirement of Registration – Applicant manufacture precast structures at their premises and transport them to construction sites in other States for assembling into buildings - Whether the applicant is required obtain registration in the other States where they execute works contract using the precast structures, when they do not have a "fixed establishment" in such States – HELD - A "fixed establishment" means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs - Even though the applicant does not have a permanent establishment at the construction site and only 6-7 of their personnel are present there temporarily, the construction site would still qualify as a "fixed establishment" within the meaning of Section 2(50) of the CGST Act, 2017, as there is a sufficient degree of permanence and the applicant utilises human and technical resources at the site. Therefore, the applicant needs to get registered in the State where the construction site is located – Whenever the applicant undertakes assembling of the precast structures at a construction site situated in Tamil Nadu, where the applicant has a principal place of business, they may add such sites as ‘additional places of business’. In case, the construction site is located in another State, they are required to get registered in the State where the construction site is located - Ordered accordingly - Supply of Goods/Services - Whether the transportation of material used for erecting the precast structures at the construction sites in other states would amount to a supply, in the absence of consideration and two different parties involved – HELD - The activity undertaken by the applicant, i.e. supply of goods or services without consideration falls in Schedule I and consequently under the scope of supply as per Section 7 of the CGST Act, 2017. Even though the activity undertaken by the applicant does not involve two different parties, as per clauses 4 and 5 of Section 25 of the CGST Act, the applicant is considered as a distinct person. Thus, even when there is no consideration and in the absence of involvement of two different parties, the transportation of material used in erection of the precast structures in the construction sites in other States amounts to supply.
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