2026-VIL-39-AAR
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SGST Advance Ruling Authority

GST - Liability for GST Registration in Works Contract Services - Section 22(1) and Section 2(71) of the CGST Act, 2017- Applicant, a company registered in Uttar Pradesh, was awarded a turnkey contract for the construction of a power substation for NTPC at Bikaner, Rajasthan - Whether the applicant is legally required to obtain a separate GST registration in the State of Rajasthan solely because the site of the works contract (immovable property) is located there - HELD – In terms of Section 22(1), a supplier is liable to be registered in the State from where they make a taxable supply. The Section 2(71) defines the "location of the supplier of services" as the place of business for which registration has been obtained - The applicant has neither established any office nor any fixed establishment in the State of Rajasthan. Since the applicant manages the project from its Uttar Pradesh office and has not established a "fixed establishment" in Rajasthan, the location of the supplier remains Uttar Pradesh and the mere location of the "place of supply" at the construction site does not necessitate a local registration - The applicant is not required to obtain a separate GST registration in the State of Rajasthan – Ordered accordingly - Tax Treatment of Inward Supplies and Determination of Nature of Supply - Section 10(1) of the IGST Act, 2017 - During the execution of a substation project in Bikaner, Rajasthan, the applicant procured equipment and materials from various vendors, with some suppliers located in Uttar Pradesh and others within Rajasthan, for delivery directly to the project site on an "FOR site" basis - Appropriate tax treatment (IGST versus CGST/SGST) for these inward supplies based on the geographic origin of the vendors and the delivery destination - HELD - The taxability of inward supplies is determined by the location of the supplier and the place of supply; if the supply involves movement of goods from a vendor in Uttar Pradesh to the site in Rajasthan, it is an interstate supply liable to IGST, but if both the vendor and the delivery site are located within the State of Rajasthan, the transaction constitutes an intrastate supply attracting CGST and SGST.
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