Registration under gst-service provided in various states

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2017 Dear Sir/Ma'am,
We are in security service business and providing our service to 5 different states of the country namely Maharashtra,Gujarat,Telangana,Delhi and Kerala. We have one registered office in Pune (MH) and all the accounting,billing,operations work done from there only,we maintained no books of accounts at any other place but have office at all the places to manage the security guard's duties and dealing with client and chasing for recovery. We are centrally registered under Service Tax.
My question is that do we need to apply for separate registration under GST for all the states even though all the accounting and billing is handled at HO only?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 January 2017 Yes, you need separate registration in each state where service is provided, as you have branch office to manage the service in each state, even though centrlised billing is done.

Vaiyapuri kannan

Vaiyapuri kannan (Expert)
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05 July 2017 If billing is to be handled from Pune ( HO ) for all branches of others states, can HO charge IGST for supply of service made to other states

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 July 2017 Yes HO charge IGST for supply of service made to other states and branches to claim ITC on it.

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2017 Thank you for reply sir..

Vaiyapuri kannan

Vaiyapuri kannan (Expert)
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05 July 2017 The deciding factors on applicability of CGST + SGST or only IGST would be such that the location of supplier of service and the place of supply . That is , if the location of supplier and place of supply fall under different states , then we may go for charging IGST but in the given case HO would not be treated as location of supplier but the liaison office ( situated in the state of supply of service) would be treated as location of supplier , so IGST may not applicable in the given case ,

Vaiyapuri kannan

Vaiyapuri kannan (Expert)
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05 July 2017 Explanation on location of supplier under GST : Many a times, it is not always possible that the supply of service is made from the regular place of business. The supplier of the service has to move from his place of business and has to render service at the place of recipient of service or has to open an office for a brief period of time alongwith the staff to supply service. The question now arises that when such temporary occupation or opening of office shall be deemed as location of supplier of service. The determination is important because if the same would not be defined then in such case, every time a person goes outside and suppose delivers the service at the premises of the recipient of service, it would be deemed that service has been supplied from that location and in turn he would be required to obtain registration in that State.

This condition provides that in case the services are supplied from fixed establishment i.e. a place other than the place of business for which registration has been obtained then, in such a case the location of supplier of service would be deemed to be the location of such fixed establishment. Therefore, the condition only covers fixed establishment and the definition as has been discussed in the previous update specifies two conditions for any place being covered under the definition of fixed establishment i.e. adequacy of human and technical resource to carry out the activity and permanence of the arrangement

Vaiyapuri kannan

Vaiyapuri kannan (Expert)
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05 July 2017 If the centralized billing for the branches situated in other states is taken care of by HO , the location of supplier of service under GST would be decided by the places wherein the branches have its place of business . So if the HO has branches in other state to ensure effective supply of services to the recipient of other states , then both the location of supplier ( the branches office would be treated as fixed place of business backed with enough technical and human resources ) and the place of supply of service would be in one state ,and hence CGST plus SGST would be levied and not IGST . In the meantime, a separate registration under GST has to be obtained for all branches having place of business in other state

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2017 Thank you so much Vaiyapuri Kannan Ji for expert advice..

Vaiyapuri kannan

Vaiyapuri kannan (Expert)
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14 July 2017 Could we again ask Seetharan Ji expert opinion on the above query because he earlier expressed that HO may raise billing for all other state branches by claiming IGST but that may not be possible if we go in depth on purposeful definition of location of supplier

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 July 2017 Yes I agree with you Mr.Vaiyapuri kannan invoice has to be raised from each branch on obtaining separate registration.