Place of business determines GST registration: no separate state registration without fixed establishment; inter-state movement attracts IGST.

The article addresses whether a supplier with its principal place of business in Uttar Pradesh must obtain separate GST registration in Rajasthan and the tax treatment of goods sent to a Rajasthan project site. It applies the place-of-business/fixed-establishment principle to conclude that absence of a fixed establishment in Rajasthan means no separate state registration is required. It states the place-of-supply rule for goods: movement terminating in another state is an interstate supply (IGST), while supplies made and delivered within the same state attract CGST and SGST; factual tax liability was not finally determined for lack of documents.

---

---

Issues: (i) Whether M/s Safety Controls & Devices Limited, registered in Uttar Pradesh, is required to obtain separate GST registration in the State of Rajasthan for executing a turnkey works contract at a project site in Rajasthan; (ii) Tax treatment of inward supplies where goods are (a) made in Uttar Pradesh and shipped to the site in Rajasthan and (b) made in Rajasthan and shipped to the site in Rajasthan.

Issue (i): Whether the applicant must obtain GST registration in Rajasthan despite having a registered place of business in Uttar Pradesh and no fixed establishment in Rajasthan.

Analysis: Section 22(1) of the CGST Act, 2017 requires registration in the state from where taxable supplies are made when turnover exceeds the threshold. Section 2(71) of the CGST Act, 2017 defines the location of the supplier of services as the place of business for which registration has been obtained or, where applicable, the fixed establishment elsewhere. The facts show that the applicant has no office or fixed establishment in Rajasthan and performs contractual, billing and management activities from its registered office in Uttar Pradesh. The supply (construction) occurs at the immovable property in Rajasthan but the supplier's location for registration purposes is the principal place of business in Uttar Pradesh.

Conclusion: The applicant is not required to obtain a separate GST registration in Rajasthan solely because the construction activity (place of supply) is located in Rajasthan; the location of the supplier is Uttar Pradesh.

Issue (ii): Tax treatment of inward supplies: (a) supplies made from Uttar Pradesh and shipped to the site at Rajasthan; (b) supplies made from Rajasthan and shipped to the site at Rajasthan.

Analysis: Section 10(1) of the IGST Act, 2017 governs place of supply for goods involving movement. Where movement of goods terminates for delivery to the recipient in Rajasthan (goods sent from Uttar Pradesh to Rajasthan), such movement constitutes an interstate supply liable to IGST. Where goods are supplied and delivered within Rajasthan (supplier located in Rajasthan and delivery within Rajasthan), CGST and SGST apply. The record lacks documentary evidence (invoices) to determine the specifics of inward supplies in the instant case, preventing a conclusive ruling on facts-dependent tax liability.

Conclusion: (a) As a matter of principle, goods moved from Uttar Pradesh to the Rajasthan site are interstate supplies liable to IGST. (b) Goods supplied and delivered within Rajasthan are liable to CGST and SGST. The authority does not conclusively determine specific inward-supply tax liability for the case due to absence of documentary evidence.

Final Conclusion: The application is partly allowed: the authority rules that the applicant, having no fixed establishment in Rajasthan and with principal place of business in Uttar Pradesh, is not required to obtain separate registration in Rajasthan for the turnkey contract; on the tax treatment of inward supplies the authority states the applicable legal principles but declines to give a conclusive factual determination for lack of documentary evidence.

Ratio Decidendi: For registration purposes under Section 22 of the CGST Act, 2017 and the definition in Section 2(71) of the CGST Act, 2017, the supplier's location is the place of business for which registration is obtained or the fixed establishment; absence of a fixed establishment in the state of supply means no separate registration is required in that state solely by reason of the place of supply being located there.

---