Page 139 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : T & D ELECTRICALS 241
(b) The scope of work of the contract include complete electrical & in-
strumentation jobs; installation, testing and commissioning at town-
ship. The job involves supply of material and installation, testing
and commissioning of the same. The basic value of the contract is
Rs. 297.85 lacs.
(c) The contractor i.e. applicant herein have to arrange all required
tools and tackles with manpower/electrician/technician with re-
quired material as per Annexure A of the contract.
(d) The invoices have to be addressed to Karnataka Cement Project (a
unit of Shree Cement Ltd.), P.B. No. 1, Kodla village, Benkanahalli
Taluk, Kalaburagi District, Karnataka, PIN-585222 and the GSTIN of
the Shree Cement Ltd., (Karnataka) is required to be mentioned in
the invoices.
(e) The contractor i.e. applicant herein does not have any premises in
Karnataka as M/s. Shree Cement Ltd., will only provide temporary
small space for office & store in their premises without any written
documents, as per para 1.17.1 of the contract.
5. Applicant’s interpretation of law :
(a) Section 22 of the CGST Act, 2017 provides requirement for registra-
tion according to which every supplier shall be liable to be regis-
tered under this Act in the State or union territory, other than spe-
cial category of States, from where he makes a taxable supply of
goods or services or both, if his aggregate turnover in a financial
year exceeds twenty lakh rupees.
(b) Section 2(71) defines location of supplier and in the instant case lo-
cation of supplier (applicant) is Rajasthan, as the supply is made
from Rajasthan. Further Section 2(71) also defines ‘location of sup-
plier of services’ and in the instant case the location of the applicant
(works contractor) will be the State where his principal place of
business is registered (unless he has established of-
fice/establishment in the place where the services are supplied).
(c) The place of supply, in case of works contract services, shall be the
location at which the immovable property (construction site) is lo-
cated, as per Section 12(3)(a) of IGST Act, 2017.
(d) Therefore we understand that we are not required to have any sepa-
rate GST registration in Karnataka State. Further according to the
Advance Ruling of AAR, Rajasthan, the jurisdictional officer also
opined that registration is not required.
(e) Documents required for proof of principal place of business, as per
GST Act are Legal Ownership Document, Consent Letter, Electricity
Bill, Municipal Khata Copy, Property Tax Receipt, Rent/Lease
agreement & Rent receipt with NOC (in case of expired agreement);
we do not have any of these documents as M/s. Shree Cement Ltd.,
have not agreed to provide said documents and hence we do not
have any permanent establishment in Karnataka State.
(f) Section 10(1) of the IGST Act, 2017 determines the place of supply of
goods, other than supply of goods imported into, or exported from
India, which has two clauses i.e. (a) and (b). We understand that
clause (b) is applicable to the instant case and hence CGST & SGST
GST LAW TIMES  14th May 2020  139