Inter-state service provider charging igst on services

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Huzefa Tinwala (Querist)
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14 November 2017 We are a MP Based Construction Company and we took services of many sub-contractors. Some of them sub-contractors are belongs to the Other State.
They are Not Registered in MP and raising the Bill for our work from there Home State levying IGST in the Bill.

Is it corrrect or Not? Can we take the credit of the IGST or We should ask the party to take the GST Registration in MP and charge CGST and SGST on Bill?

RAJA P M

RAJA P M (Expert)
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14 November 2017 The Sub-Contractors are registered in his home states and they ll be serve in MP (Your Site).
Yes... The Sub-Contractors is correct way of charging IGST...

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Huzefa Tinwala

Huzefa Tinwala (Querist)
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15 November 2017 Thank You Sir,

But in Case of Services, is it correct to serve in Other State without having registration in that stat?

RAJA P M

RAJA P M (Expert)
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15 November 2017 Without registration means URD.....
URD can't charge GST Tax for his billings... Also URD can't make supplies to inter state upto 12/10/2017.

From 13/10/2017 it's available...

But, URD can't charge GST...

Huzefa Tinwala

Huzefa Tinwala (Querist)
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16 November 2017 It is not the case of URD suppliers but the Sub-Contractors are not registered in the State where they are providing services.

RAJA P M

RAJA P M (Expert)
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16 November 2017 ask your query in detail

Huzefa Tinwala

Huzefa Tinwala (Querist)
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16 November 2017 We think that as per the rules of GST every service provider should have a separate registration in that state where they are providing the services.
Considering the above rule, should we ask our sub-contractor to get registered in MP also, because he is providing services to us in MP.

RAJA P M

RAJA P M (Expert)
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16 November 2017 (should we ask our sub-contractor to get registered in MP also,)..... This is your business dealings... If you ask them and they ll register in MP then they will be charge CGST and SGST in MP based Registration...

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