TaxTMI 
TaxTMI 
Place of supply for a registered person got delivered goods to its worksite in another state .
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....lace of supply for a registered person got delivered goods to its worksite in another state . <br> Query (Issue) Started By: - KALLESHAMURTHY MURTHY K.N. Dated:- 2-3-2026 Goods and Services Tax - GST <br> Got 6 Replies <br> GST<br> <br> A firm in the business of civil works contracts registered in Karnataka only, undertakes works contracts in Tamilnadu, procuring construction materials in Tamilnad....
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....u 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 sup....
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....ply? Since works contract executed in Tamilnadu is the output tax not liable to Tamilnadu. --Reply By: Shilpi Jain The Reply: In case of goods supplied the vendors could charge IGST, but in case any services received, they would charge only C+S since its an immovable property related transaction. --Reply By: Shilpi Jain The Reply: Ideally in these type of situations, it is best to take regis....
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....tration TN, complete all compliances and close --Reply By: Sadanand Bulbule The Reply: Levy of IGST on the outward works contract is sustainable only where the supply is legitimately effected from the Karnataka registration and no obligation arises to obtain registration in Tamil Nadu. However, if the nature and execution of the contract requires registration in Tamil Nadu (for instance, due to....
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.... a fixed establishment or site presence), the transaction assumes the character of an intra-State supply in Tamil Nadu and must accordingly be subjected to CGST and Tamil Nadu SGST, and not IGST. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Respected Sir As pointed out by respected Sri.Sadanandji if the RP has an establishment in TN, then it would be better take registrati....
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....on there and avail ITC of CGST and SGST. If the RP has no permanent establishment in TN then the service provides to the RP must charge IGST and I am of the opinion that ITC cannot be denied to the RP. IMHO, POS must be viewed from the limited prism of whether to collect CGST/ SGST or IGST. Thanks --- Sub-Reply By: KALLESHAMURTHY MURTHY K.N. The Sub-Reply: Sri Kalpathi Sir, When the supply of s....
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....ervice (works contract) undertaken by the RP in Tamilnadu procuring goods in Tamilnadu itself, in my view, the place of supply would be where the goods are terminated, suppliers are required to raise tax under CGST & SGST, and the RP cannot take ITC in Karnataka. For example, a hotelier in Delhi supplies room service to an RP from Haryana. The hotelier must issue a tax invoice for CGST & SGST, and....
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.... so RP cannot take ITC. Hence, more clarity is requested on the above issue. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Respected Sir As regards hotel stay in another state, the issue is still nebulous and the GST Council is yet to clarify. Nonetheless, there is a specific provision in Sec.12(3) covering this type of supply. Yes, I agree that Hoteliers only collect CGST and SGS....
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....T and mention the recipients address of anotther state in their supply invoice. The net result is the service recipients legitimate ITC going abegging. Let us hope that better sense will prevail in course of time. Coming to the issue at hand, I am of the view that as the recipient of goods does not possess an establishment in the State where the WC is being executed, the transactions of these type....
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.... will squarely fall under the category of Bill to Ship to model. The suppliers must make a Bill to Ship to invoice with IGST imputed under the cover of e-way bill and deliver the goods at your clients site. Shelter can be had under Section 10(1)(ca) of the IGST Act, 2017. Experts may please correct my understanding. Thanks <br>***<br> Discussion Forum - Knowledge Sharing....
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