Works contract
This query is : Resolved
28 November 2018
Dear Sir, We are in the business of Erection and Installation of Prefabricated Building i.e Shades for Factories. The resultant item is immovable property and is covered under works contract. We get contract from all over India.We donot have any fixed establishment at that site. The work flow is such that we give sub contract for erection to contract who takes his staff and erects the building and our staff on monthly basis for inspection.All our equipments are kept at the party site in one room which is allotted to us. My query is whether we have to take registration in every state where we get workcontract.
29 November 2018
Not needed. you take registration in the place of your business only. those subcontractors must take registration in the respective states.
29 November 2018
Sir, if only we were doing this contract work with labour hired at various places will we have to take registration. Can we do our work by taking registration at Rajasthan our pricipal place
03 August 2025
Your question relates to GST registration requirements for works contracts under the Goods and Services Tax (GST) regime, specifically in the context of interstate works contract services involving erection and installation of prefabricated structures across India.
Let's break it down clearly.
🔍 Your Business Scenario (Post-GST Regime, 2018 Onwards):
You’re a Rajasthan-registered company
You undertake works contract services (WCS) like erection/installation of immovable structures across multiple states
You do not have fixed establishments in those states (just temporary project sites)
You use sub-contractors for the erection work
Your staff goes to site occasionally; equipment is temporarily stored there
âś… Do You Need GST Registration in Every State Where Work Is Done?
✔️ Short Answer: NO, as long as:
You do not have a fixed establishment or permanent place of business in those states
Your billing and accounting are done from Rajasthan
The contract is executed and controlled from Rajasthan
👉 Therefore, you can operate across India under your Rajasthan GSTIN and charge IGST on works contract services provided in other states.
🧾 Legal Basis and Clarification
🧩 Definition of "Place of Supply" & Registration Requirement
Under Section 12(3) of the IGST Act:
In case of immovable property-related services (like works contracts), the place of supply is the location of the property
So if the property is in Maharashtra, it's the place of supply
BUT — under Section 22 of the CGST Act:
You're required to take GST registration in a state only if you have a fixed establishment or a place of business there
📌 A temporary site office, storage room, or visiting staff does not qualify as a “place of business” under GST law unless:
You have permanent infrastructure for operations, or
You do separate accounting and contract execution from that state
âť— When GST Registration May Be Required in Other States
You may need to register in another state only if:
You execute contracts from that state with local staff, billing, or accounting
You set up a dedicated branch or project office
You receive inward supply of goods or services at that project site and use it locally
🧾 Subcontractors and GST
Your subcontractors, if they’re local in other states, must register in the state where they supply services
They will bill you with CGST + SGST (intra-state) or IGST (inter-state), depending on their registration and place of supply
âś… What You Should Do Practically
Task Your Action
Principal GST Registration Keep it in Rajasthan
Billing for out-of-state projects Raise IGST invoices
Fixed offices/project offices Only register in other states if such offices exist
Subcontractors Ensure they have state-specific GST registration if required
Equipment room at site Does not count as a place of business
âś… Summary
Question Answer
Do we need GST registration in every state? ❌ No, not unless you have a fixed establishment there
Can we operate pan-India with Rajasthan registration? âś… Yes, and charge IGST
What about temporary presence at work sites? ❌ Doesn’t qualify as "place of business" for GST
Do subcontractors need local registration? âś… Yes, if they operate in that state regularly
Let's break it down clearly.
🔍 Your Business Scenario (Post-GST Regime, 2018 Onwards):
You’re a Rajasthan-registered company
You undertake works contract services (WCS) like erection/installation of immovable structures across multiple states
You do not have fixed establishments in those states (just temporary project sites)
You use sub-contractors for the erection work
Your staff goes to site occasionally; equipment is temporarily stored there
âś… Do You Need GST Registration in Every State Where Work Is Done?
✔️ Short Answer: NO, as long as:
You do not have a fixed establishment or permanent place of business in those states
Your billing and accounting are done from Rajasthan
The contract is executed and controlled from Rajasthan
👉 Therefore, you can operate across India under your Rajasthan GSTIN and charge IGST on works contract services provided in other states.
🧾 Legal Basis and Clarification
🧩 Definition of "Place of Supply" & Registration Requirement
Under Section 12(3) of the IGST Act:
In case of immovable property-related services (like works contracts), the place of supply is the location of the property
So if the property is in Maharashtra, it's the place of supply
BUT — under Section 22 of the CGST Act:
You're required to take GST registration in a state only if you have a fixed establishment or a place of business there
📌 A temporary site office, storage room, or visiting staff does not qualify as a “place of business” under GST law unless:
You have permanent infrastructure for operations, or
You do separate accounting and contract execution from that state
âť— When GST Registration May Be Required in Other States
You may need to register in another state only if:
You execute contracts from that state with local staff, billing, or accounting
You set up a dedicated branch or project office
You receive inward supply of goods or services at that project site and use it locally
🧾 Subcontractors and GST
Your subcontractors, if they’re local in other states, must register in the state where they supply services
They will bill you with CGST + SGST (intra-state) or IGST (inter-state), depending on their registration and place of supply
âś… What You Should Do Practically
Task Your Action
Principal GST Registration Keep it in Rajasthan
Billing for out-of-state projects Raise IGST invoices
Fixed offices/project offices Only register in other states if such offices exist
Subcontractors Ensure they have state-specific GST registration if required
Equipment room at site Does not count as a place of business
âś… Summary
Question Answer
Do we need GST registration in every state? ❌ No, not unless you have a fixed establishment there
Can we operate pan-India with Rajasthan registration? âś… Yes, and charge IGST
What about temporary presence at work sites? ❌ Doesn’t qualify as "place of business" for GST
Do subcontractors need local registration? âś… Yes, if they operate in that state regularly
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