WE ARE A CONTRACTOR REGISTERED IN STATE OF BIHAR, WE HAVE GOT A CONTRACT FOR CONSTRUCTION WORK IN KHAGARIA BIHAR FROM OUR PRINCIPAL WHO IS REGISTERED IN TELANGALA STATE. they are into installation and maintenance of mechanized silo for storage of grains. THEY ARE SAYING US TO RAISE BILL ON IGST AS THEY ARE ONLY DOING CONSULTANCY FOR OTHER FOR INSTLATION OF MACHINERY, PLEASE CLEAR
Please refer to Section 12 of IGST Act 2017 which deals with the "Place of supply of services where location of supplier and recipient is in India".
As per section 12(3)a -
(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:
It means for construction or any other similar service in relation to an immovable property, the place of supply is the location of immovable property.
In your case, the Place of Supply is Bihar and you are registered in Bihar, hence you can raise only CGST and SGST Invoice even if your recipient is located in Telangana.
Note: usually in case of registered person, the place of supply is the registered address of the registered person. But this will not apply in your case, please refer to Section 12(2) of IGST Act 2017.
THANK YOU SIR, OUR CLIENT IS into installation and maintenance of mechanized silo for storage of grains. we are engaged only for providing a civil structure/ SUPPORT STRUCTURE on which they are installing the Machinery. the main work of our client is the installation of machinery and the civil structures are ancillary works relating to installation. we have been awarded only civil / support structures work related to machinery/ silo installation. in this case can we charge IGST
I have discussed your issue in detail there.
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