Case Details: Teemage Builders (P.) Ltd., In re - [2026] 185 taxmann.com 607 (AAR-TAMILNADU)
Judiciary and Counsel Details
- C. Thiyagarajan & B. Suseel Kumar, Member
Facts of the Case
The applicant, engaged in erection and assembly of precast concrete structures, sought an advance ruling regarding whether it was required to obtain GST registration in States where it executes construction activities using precast structures manufactured at its principal place of business. It was submitted that the applicant manufactures precast components at its registered premises in Tamil Nadu and transports them to construction sites located both within and outside the state for assembly into buildings. The applicant questioned whether such site addresses were required to be registered as additional places of business and whether interstate transportation of materials without consideration would constitute supply under the CGST framework. The matter was accordingly placed before the Authority for Advance Ruling (AAR).
AAR Held
The AAR held that the construction sites where the erection and assembly of precast structures are undertaken possess a sufficient degree of permanence along with deployment of human and technical resources, thereby qualifying as a ‘fixed establishment’ under Section 2(85) of the CGST Act and Tamil Nadu GST Act. It was further held that, where such construction sites are located within Tamil Nadu, they may be treated as additional places of business; however, where sites are located in another State, separate registration under Section 22 becomes mandatory. It was observed that the applicant, being treated as a distinct person for each registration under Section 25, undertakes inter-state movement of goods or services even without consideration, which falls within Schedule I and consequently within the scope of supply under Section 7 of the CGST Act and Tamil Nadu GST Act. Accordingly, it was concluded that such activities amount to supply and the applicant is required to obtain registration in the states where construction sites are situated.
List of Cases Referred to
- GEW (India) Pvt Ltd. In re [2021] 132 taxmann.com 139/[2022] 89 GST 112/56 GSTL 109 (AAR – KARNATAKA) (para 3.2)
- T & D Electrical, In re [2020] 116 taxmann.com 390/36 GSTL 239 (AAR – KARNATAKA) (para 3.2)
- Jaimin Engineering Pvt Ltd., In re [2018] 97 taxmann.com 195/69 GST 876/17 GSTL 33 (AAR – RAJASTHAN) (para 3.2).
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