State-wise Registration of GST by a person for supply of labour

[Parvinder Singh]

Does a taxable need to get himself registered himself in each state for supply of labour to interstate business entities for manufacturing of some products?

Can he not supply labour to other states?

Does he not allow to charge IGST in his bills for supplying labour out of his state?

[KASTURI SETHI]

When you supply service or goods out of State, you are not eligible for threshold exemption. You are to obtain registration under GST.

[Himansu Sekhar]

If the service is supplied from state a to state b , igst will be applicable. If the said service is supplied from state b to state b, regn needs to be taken. That means if you have not fixed establishments in other states to supply the services, no regn is required. When you supply services in other states regularly, you must have offices in the respective states to manage the supply of services. In such situations regn needs to be taken.

[Ganeshan Kalyani]

It is practically not possible to send person / manpower from state a to state b. It has to be managed locally as it is cost effective also. So a person has to get register in each state from where he intend to provide manpower supply service. Thanks.

[RAMESH PRAJAPATI]

State wise registration is advisable in order to claim ITC smoothly, wherever available.

AI Summary

GST registration for interstate labour supply is required and IGST applies when services cross state boundaries. Supply of manpower services across state boundaries removes entitlement to the intrastate threshold exemption and generally requires GST registration; such interstate supplies are subject to IGST. Registration is required where the supplier has a fixed establishment in, or regularly supplies services to, another state; absent fixed establishments and regular supply, separate state registration may not be necessary. Practical and ITC considerations often favour state wise registration where services are provided locally in multiple states.