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

Fixed establishment triggers GST registration; nominal internal valuation accepted where recipient claims full input tax credit and no outward supplies.
A staffed office that provides services to the principal office in another State constitutes a fixed establishment and requires GST registration in that State. For valuation, when the recipient can take full input tax credit, the transaction value is accepted as fair value, allowing nominal internal charges under Rule 28; if the branch has no taxable outward supplies, returns may reflect nil turnover, but reverse charge liabilities or other taxable receipts at the branch can independently compel registration.