Works Contract Service

[Kaustubh Karandikar]

XYZ registered in Maharashtra under GST will be procuring material viz. Putty & Texture Bags from vendor. XYZ will provide own manufactured Colors through their distributors. XYZ will be hiring Applicators for applying paint on the buildings situated in Madhya Pradesh and will pay them on sq. ft. basis. XYZ to apply putty with colours on the building. Billing to Clients in Madhya Pradesh by XYZ on per sq. ft basis without any break up of material and labour.

1) Is XYZ required to obtain separate GST Registration in Madhya Pradesh?

2) What will be the HSN / SAC Code for GST and percentage of GST?

[Surjeet Singh]

1. If XYZ does not have an establishment or agent in MP it is not required to take registration in MP. Above supply will be Inter-state supply and IGST will be chargable.

2. HSN code 9954, SAC code 995473 and GST Rate 18%.

For further queries contact on 9905126744.

AI Summary

Inter-state supply: IGST applies and no separate state GST registration if no establishment or agent, for works contract billing. If a supplier has no establishment or agent in the State where works contract services are performed, the supply is an Inter-state supply attracting IGST and no separate State GST registration is required; the adviser identifies HSN 9954, SAC 995473 and a GST rate of 18% for the painting and putty application service.