Whether Registration Required in Another State

[Ayush Aggarwal]

Madams/Sirs,

My client is a company engaged in business of providing translation services having principal place of business in Punjab. They have employees from all over the country. Their 95% of turnover is from export of services. Their aggregate turnover exceeds Rs. 10 Crores. They are registered in Punjab under PGST Act, 2017.

Now they have taken on rent a small building in Maharashtra (Pune). This building is used exclusively as office (back office) where employees in Pune provide translation services to the company for its ongoing projects. It can also function as a hub where outside contractors come into the back office and provide translation services to the company. No service is provided to any customer from Pune Office directly i.e. there is no sales/turnover from Pune office. The Pune office employees report to Punjab office and all the work gets invoiced from Punjab Office. My query is whether they would be required to obtain GST Registration in Maharashtra because we are already registered in Punjab and have a fixed establishment in another state i.e Maharashtra.

AI Summary

Translation Company Needs GST Registration in Maharashtra Due to Pune Office, Rule 28 Allows Nominal Valuation for Compliance. A company providing translation services, primarily exporting from Punjab, is considering whether it needs GST registration in Maharashtra after renting an office in Pune for back-office operations. Despite no direct sales from Pune, responses suggest registration is necessary due to services between distinct persons. Concerns about valuing services for GST compliance were addressed by referencing Rule 28, which allows nominal amounts if full Input Tax Credit is available. It was concluded that GST registration in Maharashtra is required, but NIL returns could be filed since no tax invoices are generated for internal services. Additional advice included considering reverse charge mechanisms.