Requirement of GST Registration in another State

[umeshkumar jhawar]

Dear Experts

One Company KR Private Limited regsitered in Maharashtra providing Job work Services in Maharashtra with the help of own Plant & Machinery. This is Intrastate Transaction hence levying CGST+SGST

Company KR Private Limited got the same contract in Madhya Pradesh. Machinery own by KR Private Limited currently installed in Maharashtra will be send to Madhya Pradesh for Job work Services which is to be provided to Madhya Pradesh Registered Person. Do I need to to take Fresh Registration in Madhya Pradesh?

[KASTURI SETHI]

Inter-State job work service  requires  registration only if the aggregate turnover crosses 20 lakhs.

[KASTURI SETHI]

GST Registration — Job workers below the annual threshold limit of ` 20 lakh, engaged in inter-State supplies exempted from registration

In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the “said Act”), the Central Government, on the recommendations of the Council, hereby specifies the job workers engaged in making inter-State supply of services to a registered person as the category of persons exempted from obtaining registration under the said Act :

Provided that nothing contained in this notification shall apply to a job-worker –

(a) who is liable to be registered under sub-section (1) of section 22 or who opts to take registration voluntarily under sub-section (3) of section 25 of the said Act; or

(b) who is involved in making supply of services in relation to the goods mentioned against serial number 151 in the Annexure to rule 138 of the Central Goods and Services Tax Rules, 2017.

[Notification No. 7/2017-I.T, dated 14-9-2017]

[Shilpi Jain]

Registration in MP is required in case the jobworker will have fixed establishment there.

[Shilpi Jain]

So is there a office/factory/workshop of the JW is MP?

How long would he provide services from MP?

[Padmanathan KV]

I am of the view that registration is required in MP. My reasoning is different. Refer to section 22 of CGST Act:

22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Section 22 of MP GST Act reads as:

(1) Every supplier making a taxable supply of goods or services or both in the State shall be liable to be registered under this Act if his aggregate turnover in a financial year exceeds twenty lakh rupees:

In this case, since the Machinery is sent to State of MP and the job work is done there using the machinery, KR Pvt. Ltd. is making taxable supplies from the State of MP. Hence, registration is required in terms of section 22 of CGST and MPGST Act.

AI Summary

GST Registration in Madhya Pradesh Mandatory for Company Sending Machinery Under Section 22 of CGST and MPGST Acts. A company registered in Maharashtra, providing job work services, plans to send its machinery to Madhya Pradesh for a new contract. The question is whether the company needs GST registration in Madhya Pradesh. One expert suggests registration is required if the aggregate turnover exceeds 20 lakhs. Another expert notes that registration is needed if a fixed establishment is set up in Madhya Pradesh. A third expert argues that since the company will make taxable supplies from Madhya Pradesh, registration is mandatory under section 22 of the CGST and MPGST Acts.