GST
TRT-2025-
AAR Odisha
Date:-20-09-22
In:-
Issue Favourable to Tax Payer ?:-
Date of order: 20-09-2022
Facts:
- The applicant M/s KONKAN RAILWAY CORPORATION LIMITED, is registered in the stae of Maharashtra and engaged in providing Works Contract Service, Transportation of Goods & Transportation of Passengers Service by Railways, and Project Services to Zonal Railways and Other agencies. The Applicant is a Government company and established in the year 1990.
- The Applicant has received a letter of acceptance (LOA) dated 15th February 2022 in Boudha District, Odisha. The total cost of the contract is Rs. 337.18.Crore and the entire work shall be completed within 24 months from the date of issue of Letter of Acceptance (LOA).
Issues:
- Whether separate registration is required in Odisha state?
Order:
- The authorities observed that for the purposes of obtaining registration, it is important to identify the ‘origin’ of supply even though GST is a ‘destination’ based tax. Tax goes to the destination State but registration is required in the origin-State. In case of “works contract” service which is immovable in nature, place of supply is where the immovable property is located. Place of Supply (as determined from IGST Act) provides the ‘destination’ and this is not relevant for registration. The location of Supplier is relevant for registration.
- Location of supplier is usually where a supply is made from, a place mentioned as a principal place of business on the GST registration certificate. But in the instant case, clause (b) appears to be applicable to the Applicant for the location of supplier of services. The location of supplier seems to be at the project site, East Coast Railway, Odisha which is different from the place of business.
- Further, the Applicant is responsible for supplying goods i.e Cement, Steel etc from the sheds/store houses constructed at the project site to carry out the construction work. The Applicant has to construct site office at the project site which shall be used by site Engineers/technical staff of the Applicant deployed for supervision of the job at site as well as for the Engineers of the East Coast Railway. As per the agreement, in order to rendering works contract service, the Applicant would depute/deploy a good number of Engineers and technical staff at the project site.
- Hence, it was held that the Applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the works contract service provided to M/s East Coast Railway, Odisha.
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