Place of Supply in Works Contract from Another State

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This discussion clarifies the Goods and Services Tax (GST) implications for a works contract performed in one state (Maharashtra) by a business registered in another (Gujarat). The place of supply is determined to be Maharashtra, where the immovable property is located. Consequently, IGST should be charged on the invoice, not CGST/SGST. No separate GST registration in Maharashtra is required unless a fixed establishment is set up there.

NIRMAL DAVE

NIRMAL DAVE (Querist)

28 February 2025 Dear All,

I am registered person under GST in Gujarat. I got work order of foundation work in Maharashtra. Recipient is also registered under GST in Maharashtra.

What is the place of supply in the above situation? What should I charge in bill SGST/CGST or IGST?

Do I need to take separate GST registration in Maharashtra to perform work order?

Thanking You
Nirmal Dave

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 February 2025 Place of Supply: Maharashtra (location of the immovable property).

Tax to Charge: IGST (as it’s an inter-state supply).

GST Registration: No separate registration is required in Maharashtra unless you establish a fixed base there.

NIRMAL DAVE

NIRMAL DAVE (Querist)

05 March 2025 Thank You very much for your valuable reply Sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 March 2025 You are welcome.

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