GST Registration Mandatory in State where Assessee has fixed Establishment for Operation: AAR [Read Order]

The Authority for Advance Ruling (AAR), Rajasthan has observed that the assessee should obtain GST registration in the state where he has fixed establishment for operation.

The applicant, who is engaged in the construction of cold storage at various parts of the country. The applicant made an application before the AAR seeking a clarification that whether they need to take a registration in Rajasthan.

Under the GST law, a supplier of service will have to register at the location from where he makes taxable supplies or is supplying taxable services if his aggregate turnover in a financial year exceeds twenty lakh rupees (ten lakh rupees in any of special category states). Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Relying on the relevant provisions, the AAR held that “a supplier of service will have to register at the location from where he makes Taxable supplies or is supplying Taxable services if his aggregate turnover in a financial year exceeds twenty lakh rupees (ten lakh rupees in any of special category states). While supplying services if the supplier of services (i.e. applicant who in the given case is a Works Contractor and is registered in State of Gujarat) has any place of business/office in the State of Rajasthan i.e. has a fixed establishment for operation in State of Rajasthan (place where the services are to be provided) then he is required to get himself registered in State of Rajasthan.”