Majumdar Industries is a partnership firm located in Jaipur. It is presently engaged in manufacture of machinery parts. Industries has given the following information relating to input tax credit for the month of Decembe

CS Executive · Tax Laws and Practice · PYQS · June 2024
Majumdar Industries is a partnership firm located in Jaipur. It is presently engaged in manufacture of machinery parts. Industries has given the following information relating to input tax credit for the month of December, 2023. Particulars GST Amount (₹) Purchase of raw material received in two equal instalments viz. the first one in December, 2023 and the second instalment in January, 2024 5,50,000 Purchase of consumables delivered directly to the job workers. Only invoice was received by the firm. 1,50,000 Purchase of bus (seating capacity 18) for transport of employees from residence to factory and back. 8,40,000 Input tax credit in respect of general insurance for motor cars of the firm used by Chief Engineers and Supervisors for official work. 12,000 Payment made to ABC Caterers for providing breakfast and lunch to the workers as voluntary staff welfare measure. 60,000 Now it is proposing to add trade in textile goods in addition to such manufacturing activity in Kota (Rajasthan) w.e.f. 1st April, 2024. Also, it proposes to open its machinery parts manufacturing activity in places such as Udaipur, Jodhpur and Bikaner (all places located within the State of Rajasthan). The management wants to obtain separate GST registration for the said multiple places of business. As regards trade in textile goods, it would be on pan India basis and it has appointed you as GST consultant. From June, 2024 Majumdar Industries is further planning to send the raw materials and semi-finished goods to job workers across Rajasthan for scaling up its production quantity of machinery parts. For the purpose of manufacture of the goods it would also send moulds and dies, jigs and other tools to the job workers for getting the product manufactured as per specifications and to achieve uniformity in production. As a GST Consultant, you are required to state the conditions to be satisfied by Majumdar Industries seeking separate registration for different places of business within the same State.

Answer & Explanation:

Separate registration for multiple places of business within a State Any person having multiple places of business within a State or a Union Territory requiring separate registration for any such place of business under section 25(2) shall be granted separate registration in respect of each place of business subject to the following conditions, viz. Such person has more than one place of business as defined in section 2(85); Such person shall not be allowed to pay tax under section 10 (composition levy) for any of his places of business if he is paying tax under section 9 for any other place of business. All separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case may be, for such supply. For the purpose of (ii) above, it is clarified that where any place of business of a registered person has been granted a separate registration it becomes ineligible to pay tax under section 10 for all other registered places of business. A registered person opting to obtain separate registration for a place of business shall submit a separate application in Form GST REG 01 in respect of each such place of business. The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.

Topics: GST Laws

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