Issue relating to gst registration

Registration 331 views 2 replies

vijay singh

manager-finance

26 Points Joined November 2010

Dear All,

I have an issue relating to registration under GST. A Private Limited Company is providing service through Internet website and is providing online database to clients all over india. It has sales office at various places in India but headoffice is located in Delhi. Persons at sales offices only co-ordinate with clients and collect payment and resolve their queries. login ID for clients is created at delhi headoffice only, also invoices to clients issued at delhi address and client can access website thorugh login ID.

now my query is do the compnay need to register under GST at delhi only since data base to client is provided through website OR do the company need to take registration at all states in India whether sales office is their or not but yes client is their and accessing the website through internet via login ID and password.

Thankyou

Replies (2)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

Please read section 43B of the model GST law. It appears that the operation would be covered under agrregator. If so then the place of aggregator would only require to be registered. Deeper examination reqd.

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

REGISTRATION UNDER GST:

For resolving your queries let me quote relevant portion of relevant provisions of Draft model Law.

SECTION: 19 REGISTRATIONS

Every person who is liable to be registered under Schedule III of this Act shall apply for registration in every such State in which he so liable within thirty days from the date on which he become liable for registration, in such manner and subject to such conditions as may be prescribed:…………………………………..

Schedule: III LIABILITY TO BE REGISTERED

Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in financial year exceeds………………………………………..

ANALYSIS:

Section-19 says, If a person liable to be registered under Schedule III then he need to apply for registration in every SUCH state in which he so liable and Schedule III says registration need to be taken in the State from where assessee makes a taxable supply. Therefore, combined reading of both the provisions envisages that assessee needs to take registration in each state from where he makes a supply. In above case since assessee is providing service from Delhi (head office of company). Therefore, he needs to get registration in Delhi. Though, he may take registration in other states also but in such situation he would not be able to justify that he makes a taxable supply from that state.