The Karnataka Authority of Advance Ruling (AAR) ruled that no separate GST registration in Karnataka required, for the supply of service, can raise invoice by charging IGST from their registered office.
The Applicant, GEW (India) Pvt. Ltd. is a company, got a sub-contract work from M/s L86T, claimed to be a works contract, for erecting steel structure cast and bolted on the ground in the civil foundation, at the site at Karwar, Karnataka. The scope of the contract involves Procurement of structural steel from approved suppliers such as SAIL/JSPL/Tata, Fabrication at GEW India factory premises, at Noida, as per the drawings, Transportation of material, and erection at Karvar site.
The applicant received a work order from L 86T (Larsen 86 Toubro) to execute the works contract at Karwar job address LE200893-Seabird package MWC04-Larsen 86 Toubro Ltd., Inside Naval Base, Karwar, Near Manzi’ Creek, Chendia PO, Uttara Kannada district, Karwar, Karnataka vide the work order. The supply is in the nature of composite supply of goods and services involving supply, erection, and installation of steel after fabrication used for harboring/anchoring of ships and classified as service under SAC 995416.
The applicant has sought the advance ruling on the issue of whether the company is required to be registered in the state of Karnataka for executing the works contract. Nevertheless, work/ purchase order being received from L&T (main contractor) on our NOIDA GSTIN ordering us to bill them on their (L&T’s) Karnataka GSTIN.
The coram of M.P.Ravi Prasad and T.Kiran Reddy ruled that the applicant need not obtain separate registration in Karnataka, for the supply of services and can raise the invoice by charging IGST from their registered office at Noida, UP, with the place of supply as Karnataka.
“Since the applicants are neither having nor intending to have any establishment at the site at Karwar, Karnataka, they cannot obtain ISD registration for the site at which they are delivering service,” the AAR said.
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