Query for GST Reg.

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This query is : Resolved

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A Mumbai-based private limited company is seeking guidance on Goods and Services Tax (GST) and Professional Tax registration requirements. They plan to rent single desks in business centres across 7-8 cities for sales representatives, while all core services are centralised in Mumbai. The company needs to understand if physical presence of a salesperson necessitates registration in those states, especially when no invoices are raised locally.

AJAY VEDPATHAK

AJAY VEDPATHAK (Querist)

15 December 2022 Dear Sir,
I'm working in Pvt Ltd company located in Mumbai. we are looking to renting out Business Centers in 7-8 key cities across the country.
In most of the cities we will rent out 1 or 2 desks where our Sales representative will sit.

Please note that all our services (Research, Fund accounting, Servicing, Payroll processing etc.) are centralized from Mumbai.

The Business Center will only be used for a Salesperson who is based in that city & will have to use it as office space when he isn’t meeting clients.

Given this background,
1. Do we need to register these single desks hired space for the purpose of GST?
2. Also do we need to register under Profession Tax Authority of respective states?

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 December 2022 1 yes.
2 yes.
...
....

AJAY VEDPATHAK

AJAY VEDPATHAK (Querist)

16 December 2022 Dear Sir,

Since our Invoicing and business is mainly run from Mumbai, and we are not raising any Invoices from the said locations where our Salesperson will be working, despite the fact that we need to get registered in those states, only as our Salesperson is physically available at that location, we have taken space over there.

What are the consequences in case of any deviation.

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 December 2022 In such a case no need for GST registration and professional tax registration in other states.

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