Place of supply in case of builder

[Rajesh Kumar]

sir/ madam,

A builder is registered in Haryana and Providing construction service in Delhi. As per GSTR-3B returns of Haryana, he is charging IGST, is it correct in the purview of place of supply ? Should he taken Registration in Delhi for the construction in Delhi ?

If its a wrong practice, then what will be the effect on ITC which availed against the invoices used in Delhi ? What will be effect of tax paid by him in the head of IGST ?

AI Summary

Debate on Builder's IGST Charging Practice: Is Delhi Registration Necessary for Compliance with Place of Supply Rules? A builder registered in Haryana provides construction services in Delhi and charges IGST according to Haryana's GSTR-3B returns. The discussion revolves around whether this practice is correct concerning the place of supply rules and if the builder should register in Delhi. Some participants argue that separate registration in Delhi is not required, citing an AAR Karnataka ruling. Others suggest that due to the nature of services and location, separate registration in Delhi is advisable to avoid complications with Input Tax Credit (ITC) and potential disputes with the Delhi Tax Department. The consensus leans towards the necessity of Delhi registration to safeguard business interests and compliance.