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

Place of supply governs whether construction services attract inter state tax and require local registration, affecting ITC availability.
Place of supply for construction services performed on land in a State determines whether supplies are treated as inter-state and whether the supplier must register in that State; a construction site ordinarily constitutes a fixed establishment, and under the place-of-supply rules (notably Section 12(3) of the IGST Act) services consumed at the immovable property's location may prevent ITC being claimed under a registration in another State, exposing the builder to denial of credit and departmental challenge.