Query on place of supply and location of supplier

A company has an office in Andhra Pradesh and plans to build a corporate office in Tamil Nadu, for which they have hired a Tamil Nadu engineer. He will provide his services and goods from his office in Tamil Nadu.

for engineer, is it intra state supply or interstate supply

Replies (5)
Quick Summary
This discussion clarifies the place of supply rules under GST for a company building a corporate office in Tamil Nadu. If an engineer provides services and materials from their Tamil Nadu office for the construction, it's considered an intra-state supply, meaning CGST/SGST applies. The 'bill to ship to' model is only relevant if goods are supplied directly from one state to another, not when a contractor includes materials in their service contract. Registration in Tamil Nadu might be advisable.

As per Section 12(3) of IGST Act , the place of supply for engineering services in relation to construction of office will be Tamil Nadau , hence CGST/SGST is applicable.
In case of Supply of goods it can made under bill to Ship to Model under section 10(1)(b) , the IGST will be applicable.

But since you have not clear in your query that including engineer services, the construction services are also given by the engineer then the whole services will be cover under construction services & Section 12(3) going to be invoke, in that case CGST/SGST will be applicable on the whole contract.

Mr. Pankaj, thank you so much. The engineer has agreed to carry out the material and labour contract.

 

Can you please advice how to raise invoice.  Is it under bill to ship to model, mentioned both GST numbers but only charging CGST & SGST . Right

IF ENGINEER IS GOING TO RAISE THE BILL FOR CONSTRUCTION (INCLDS MATERIALS) THEN HE CANNOT CHARGE IGST IN THAT CASE.

SO CGST/SGST IS APPLICABLE.

 "BILL TO,SHIP TO" MODEL  IS APPLICABLE  ONLY, IF VENDOR (GOODS/MATERIAL) IN TAMIL NADU DIRECTLY RAISE THE BILL TO YOU IN ANDHRA PARDESH. BUT SINCE YOU HAVE GIVEN CONTRACT TO ENGINEER WITH MATERIAL IN THAT CASE THE ENGINEER WILL DEFINATELY TAKE THE BILL FROM VENDOR IN HIS OWN ACCOUNT & FURTHER HE WILL RAISE BILL FOR CONSTRUCTION TO YOU.

 

WHY DON'T YOU OBTAIN REGISTRATION IN TAMIL NADU ALSO.......

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