Place of supply for a registered person got delivered goods to its worksite in another state .

[KALLESHAMURTHY MURTHY K.N.]

A firm in the business of civil works contracts registered in Karnataka only, undertakes works contracts in Tamilnadu, procuring construction materials in Tamilnadu itself and got delivered to the worksite in Tamilnadu. Tamilnadu suppliers have issued tax invoices for IGST and are also charging CGST & SGST. The firm has availed of the ITC of such tax in Karnataka and declared output tax under IGST. Is this the correct procedure with respect to the tax invoice issued by the suppliers for the goods delivered in Tamilnadu charging IGST in terms of place of supply? Since works contract executed in Tamilnadu is the output tax not liable to Tamilnadu.

AI Summary

Place of supply for worksite deliveries determines whether IGST or CGST+SGST applies to supplier invoices. Place of supply for goods delivered to a construction worksite governs whether CGST & SGST or IGST applies; where materials are delivered to the worksite in that state the supply is intra state and attracts CGST & SGST. The facts: a contractor registered in one state receives materials delivered to a worksite in another state, suppliers issued invoices charging IGST and CGST & SGST, and the contractor availed ITC in its home state while declaring output tax under IGST. The issues are correct invoice composition, entitlement to ITC in the home state, and whether output tax liability is attributable to the worksite state.