Power bank rental service - Place of Supply/ GST Registration / Charging of Tax under which head?

[Kishore Soni]

We are a new startup firm. We have started a “fully automated power bank rental service”.

The principal place of our business is at Surat. We are duly registered under GST at Surat.

We do not have any office in Maharashtra.

Our Mobile Application Server is situated in Bangalore.

Our nature of business

We have imported the customize Power Bank device (portable) along with charger unit (fixed at a terminal). We have installed our devices at footfalls like Cinema Halls, Malls, Food Courts etc. in the state of Maharashtra and Gujarat. We may expand our services in the future to other states also.

If any customer is in need of charging a mobile phone, then he may visit any of our nearby terminals and borrow Power Bank by scanning QR code through our mobile app. The customer may drop (return) the Power bank at any of our terminal.

We have two plans for our customers:-

Hourly Charges (with security deposit refundable)

Quarterly / Six Monthly Pack (unlimited use)(non-refundable)

We accept payments in online mode through our mobile app only.

For more details, you may visit our website: https://plugo.io

Our queries:-

Do we need to get GST registration under both the states? Please note that we do not have any offices in Maharashtra. So on what basis (documents), we can obtain GST registration in Maharashtra?

Our principal place of business is located at Surat. We do not ask for KYC detail or address from customers. We accept payments in online mode through our mobile app only. So we could not locate from which state subscription has arrived. In such a situation under which head (CGST & SGST or IGST) we have to charge GST?

Customers may pick a Power Bank device at one terminal located in one state (say Gujarat) and after completion of use can return the same at other terminal located at other states (say Maharashtra). In such a situation we have to bring back Power Bank devices to its original terminal.

What documents do we need to keep along with “Power Bank” when bringing them back to its original terminal (i.e. from Maharashtra to Gujarat)?

Do we cover under “Electronic Commerce Operator” as defined in Sec. 2(45) of the CGST Act, 2017?

Kindly give detailed and clear opinion along with the reference of relevant sections, rules etc. where ever possible.

We will give more details/ explanations if required.

Thanking you.

AI Summary

Place of Supply rules determine whether CGST and SGST or IGST apply to cross state power bank rental services. Place of supply and GST characterisation for a power bank rental service determine whether CGST/SGST or IGST applies; supplies are classified by place of supply rules for services and for goods on hire. Because terminals are located across states and customers may pick up and return devices in different states, supplies may be inter state, creating a need to obtain GST registration where taxable supplies occur or where goods are situated. Maintain transport and inventory records, transaction receipts, and terminal location evidence. The mobile app may constitute an electronic commerce operator if it facilitates supplier-customer matching and receives consideration, triggering additional compliance.