Bill to Difference state of the Company - Contract entered with difference state address

[Abhijeet Mane]

Background:

Company A, situated in Rajasthan and primarily engaged in providing security services, has entered into a contract with Company B. The contract in question is tied to the corporate office of Company B, which is located in Uttar Pradesh. Company B also maintains an additional office cum factory in Gujarat. Under this agreement, Company A is also entrusted with the responsibility to provide security services to Gujarat Location also.

Currently, Company A is issuing an invoice to Company B for security services rendered. Company B has requested that Company A generate one IGST invoice, with the bill-to address listed as Gujarat, for the services provided at the Gujarat location.

Query:

Is it possible for Company A to invoice Company B directly at their Gujarat location for the security services rendered there by charging IGST? Despite the contract entered with the corporate office having UP address only, does Company A necessarily have to raise the invoice to that UP address?

Please bear in mind that Company A is not keen on any additional agreements or contract addendums to include the Gujarat address.

[Shilpi Jain]

Under GST invoice is required to be issued by the person supplying the service. Hence, the GUj registration can issue invoice tothe customer as it is providing the services.

Contract / PO with Corporate will not be very relevant to decide which registration issues invoice to the customer.

[Raam Srinivasan Swaminathan Kalpathi]

I am of the view that Company A can very well issue an IGST invoice with place of supply as Gurajat to its customer. There is no need to take registration in Gujarat.

AI Summary

Place of supply: supplier may invoice at the location where services are rendered and charge IGST for inter state supply.
Where services are physically provided at a location in a different tax jurisdiction, the supplier's invoice may reflect that place of supply and attract IGST as an inter state supply; the contractual corporate office address alone does not determine tax treatment and the registration under which services are provided may issue the invoice without amending the contract.