M/s T & D Electricals (“Applicant”) [KAR ADRG 18/2020 dated 31.03.2020] registered under GST as works contractor in Rajasthan had filed an advance ruling application before the Karnataka Advance Ruling Authority (“Authority” or “AAR”). As per the facts of the case, the Applicant has been awarded a works contract by Shree Cement Ltd. which has to be executed in the state of Karnataka from the temporary site provided by Shree Cement Ltd. as per terms of contract. It sought an advance ruling as to whether it has to obtain a separate registration in Karnataka for execution of such works contract even though it does not have any permanent establishment. In this regard, the Authority referred to Section 22 of the Central Goods and Services Tax Act, 2017 which provides for provisions for GST registration and stipulates that every supplier shall be liable to be registered in the state from where the said supplier makes the taxable supply of goods or services or both. Accordingly, the Authority held that in view of the fact that Applicant intends to supply goods or services or both from their principle place of business which is in Rajasthan and they do not have any other fixed establishment other than principal place of business, there is no requirement for a separate registration in Karnataka for execution of works contract. However, the Authority further clarified that the Applicant is at liberty to obtain the said separate registration, if they are able & intend to have a fixed establishment at the project site in Karnataka. Further, the Authority held that the dealer in Rajasthan supplying goods to the Applicant for execution of works contract in Karnataka has to charge CGST & SGST when the goods are shipped to project site in Karnataka, under ‘Bill to – Ship to‘ transaction in terms of Section 10(1)(b) of the Integrated Goods and Services Tax Act, 2017. Similarly, the dealer in Karnataka has to charge IGST when the goods, purchased by the Applicant, are shipped to a project site in Karnataka, under ̳Bill to – Ship to‘ transaction.