Additional Place of Business for Construction Service

[Sangeetha D]

Mr. A, a construction-related company registered in Tamil Nadu (Salem), is providing construction services to Mr. B, who is not registered in GST (Trichy). Mr. A wants to purchase materials from a supplier in Salem and have them shipped directly to Mr. B in Trichy. Does Mr. A need to have a branch in Trichy, and what is this the correct way of doing it?”

[Sadanand Bulbule]

Normally, additional place of business is declared in the State. However, an independent registration must be taken in each State as provided under Section 22 of the CGST Act, from where the services are actually provided. For more details, refer Section 2[15] read with 12[3] of the IGST Act, as regards to determine the actual location of construction services of immovable property are provided.

So you need to take an independent GST registration in Trichy.

[Sadanand Bulbule]

Here is a corrigendum:

Since Salem and Trichy are located in the State of Tamil Nadu, only addtional place is to be declared for amendment in the GSTIN. So there is no need to take separate registration at Trichy, being in the same State.

[Shilpi Jain]

What is the duration of the contract. What kind of construction services are provided? Many other aspects need to be analysed before concluding this aspect.

AI Summary

Additional place of business may suffice when supplier and recipient are in the same state, otherwise independent registration may be required.
When supplier and recipient are in the same State, declaring an additional place of business by amending the existing GST registration ordinarily suffices; if services are actually provided from a different State, an independent registration in that State may be required. Determination hinges on the location where construction services of immovable property are performed and on factual aspects such as contract duration and nature of services.