Question

A & CO regd. in delhi gets a wct(exceeding rs. 20.00 lac) in patna. A & co do not have regd in patna. He purchased material from patna and other states also. Suppliers of patna issued bills in the name of a & co(bill to ship to at delhi address) and charged igst although goods were deliverd at patna site. Besides a & co purchased goods from maharashtra and up also (bill to delhi, ship to patna) with igst. A & co issued bill for his work contract services from delhi address and charge igst. A & co not taking itc of any of the goods purchased from patna, maharashtra and up. In second situation a & co purchased all the goods from delhi and dispatch them from delhi to patna .a & co issued bill for his work contract services from delhi address and charge igst . In this situation will it be correct to take itc of purchases made from delhi for the patna contract. Do a & co gets any support from the advance ruling of rajasthan by not taking registration in patna(m/s jaimin engineering private limited v/s mr. Nitin wapa (cgst member) and mr. Sudhir sharma (sgst member) order dated 01/07/2018 if a & co compulsorily required to be regd in patna than what are penal provision a & co will have to face under gst such as not taking regd, charging and depositing wrong taxes etc

Answer

As A & Co. has its Place of business in Delhi and from your query it seems that it does not have any fixed establishment in Patna where he is providing works contract service. Therefore as per decision of Rajasthan Authority of Advance Ruling in case of M/s Jaimin Engineering Private Limited, A & Co. is not required to take registration in Patna.

So far as question of ITC is concerned, you are eligible to take ITC of inputs in both situations i.e. if you have first received the inputs in Delhi and then dispatched to Patna or in second situation even if goods are directly dispatched to Patna on bill to ship to basis as in that case also goods are deemed to have received in Delhi.

However as per Rule 55 of CGST Rules you are required to issue challan for movement of goods to Patna in both situations discussed above. (Reply dt.29/11/2018)