Registration with respect to work contract service

This query is : Resolved

Prabhpreet Singh Sheetal (Querist)
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07 May 2018 FACTS : An assessee is engaged in business of providing work contract services. The assessee is registered in MP and has now received a new work contract in the state of Maharashtra from a private institute.He is not having any place of business or branch in Maharashtra. Contract will continue for a period of approx. 2 years.
QUESTION : Whether the assessee needs to take a new registration in the state of Maharashtra? If yes, whether he needs to take a regular registration or casual taxable person?

Trinadharao Adigarla

Trinadharao Adigarla (Expert)
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07 May 2018 Apply separate Registration at Maharashtra and Regular Registration

Prabhpreet Singh Sheetal

Prabhpreet Singh Sheetal (Querist)
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08 May 2018 Thanks for the reply but still there is lot of ambiguity and confusions, as with reference to
i) Section 12(3)(a) i.e Place of supply of services in relation to immovable property
ii) Section 10(1)(b) i.e. Place of supply of goods where goods are delivered by supplier to a recipient(construction site) on direction of third person(work contractor) and
iii) Section 22(1),
it seems that the assessee (work contractor) can provide his services in other state without any requirement of taking registration in such other state.
On what basis the assessee needs to take the registration in the state of Maharashtra? Please provide the reference of relevant section/s?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Great question! This is a common point of confusion in inter-state works contract services under GST (or earlier VAT regime). Let me clarify with reference to the law and principles governing registration and place of supply.

Context:
Assessee is registered in Madhya Pradesh (MP).
Has received a work contract in Maharashtra (MH).
No fixed place of business or branch in Maharashtra.
Contract period ~ 2 years.
Question: Is Maharashtra registration required? If yes, what kind?
Key legal references and concepts:

1. Place of Supply for Works Contract (Section 12(3)(a) of IGST Act, 2017)
Place of supply of services related to immovable property (works contract services) is where the immovable property is located.
So, if work is executed in Maharashtra, place of supply is Maharashtra.
2. Section 22(1) of CGST Act (Registration threshold)
Every person who is liable to pay tax under GST must obtain registration.
Threshold limits exempt registration only if aggregate turnover is below specified limits in a state.
If you are providing taxable services in Maharashtra exceeding threshold limits, registration is mandatory in Maharashtra.
3. Section 27 of CGST Act (Separate registration for multiple states)
If a person carries on business in multiple states, he must obtain separate registration for each state.
4. Regular vs Casual Taxable Person Registration
Regular registration: When you have a fixed place of business in the state or you are regularly doing business in that state.
Casual taxable person: No fixed place of business in the state, but occasional supply (like exhibition, events) and expected turnover exceeds threshold — temporary registration for limited period.
Application to your facts:

Assessee has no fixed place of business in Maharashtra.
Contract is long-term (~2 years), so it is not an occasional/temporary supply.
Therefore, Casual Taxable Person registration does not fit, since it is for short-term supplies.
Since the contract is long-term and continuous, and services are rendered in Maharashtra, the assessee is deemed to have a business presence there for GST purposes.
Hence, Assessee needs to take a separate Regular registration in Maharashtra.
Relevant legal references for your question:

Reference Summary
Section 12(3)(a), IGST Act, 2017 Place of supply of services related to immovable property is location of the property
Section 22(1), CGST Act, 2017 Registration mandatory if taxable supply exceeds threshold in a state
Section 27, CGST Act, 2017 Separate registration required for each state where business is carried on
Explanation 1, Section 2(18), CGST Act Defines "business establishment" including places where taxable supplies are made
Section 2(20), CGST Act Defines "Casual Taxable Person" as someone who occasionally undertakes business in a state without fixed place
About your doubts regarding Section 10(1)(b) and others:

Section 10(1)(b) of VAT/MVAT deals with place of supply of goods when supplied on direction of third party.
However, under GST, works contract is treated as supply of services, and place of supply is immovable property location (Section 12(3)(a) IGST Act).
Hence, the place where the work is executed (Maharashtra) is decisive for registration.
Summary:

Question Answer
Does assessee require registration in Maharashtra? Yes
What kind of registration? Regular registration (not casual, since contract > short duration)
Basis/legal section Section 12(3)(a) IGST Act (place of supply), Section 22 & 27 CGST Act (registration)

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