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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 March 2025 You are welcome.

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