M/s SAFETY CONTROLS & DEVICES LIMITED

GST update /2026-27/0047

Hon’ble Authority: RAJASTHAN AUTHORITY FOR ADVANCE RULING
Name of the applicant: M/s SAFETY CONTROLS & DEVICES LIMITED
Ruling No.: ADVANCE RULING NO. RAJ/AAR/2025-26/18

Bench	Utkarsha Joint Commissioner Member (Central Tax) & Dr. Akhedan Charan Additional Commissioner Member (State Tax)
Date of Ruling	17-12.2025
Outcome	Partly in favour of the Applicant

Brief Facts of the Case

M/s Safety Controls & Devices Limited, the Applicant is a company registered under GST in the State of Uttar Pradesh, with its registered office in State of Uttar Pradesh. The Applicant was awarded a contract by M/s National Thermal Power Corporation Limited (NTPC) for construction of a substation under the 'Substation Package for 945 MVA Capacity for Power Evacuation from Solar PVR Projects at Bikaner, Rajasthan' wherein the land for construction of the substation is to be provided by NTPC. The substation, upon completion of construction, shall become the property of NTPC. The Applicant has no right or interest in the substation after completion.In this regard, the applicant purchases equipment from Original Equipment Manufacturers (OEMs) and other vendors on FOR (Freight on Road) site basis, and the material is directly supplied by the vendor to the project site at Rajasthan. However, all contractual, billing, and management activities are conducted from the registered office at Lucknow, Uttar Pradesh.The Applicant does not have any fixed establishment or office in the State of Rajasthan. In this regard, the applicant sought Advance Ruling regarding separate registration requirement in State of Rajasthan and also on tax treatment of inward supplies.
The application was initially rejected by the Rajasthan AAR on the ground that the Applicant was already registered in Uttar Pradesh. On appeal, the Rajasthan AAAR set aside the ruling and remanded the matter, holding that registration in another State was irrelevant to the issue of registration in Rajasthan pursuant to which, the present ruling was passed on 17.12.2025 after consideration on merits.

Relevant Section

Section 22 of CGST Act 2017
Section 2(71) of CGST Act 2017
Section 10(1) of the IGST Act 2017
Section 12(3) of the IGST Act, 2017

Question before Hon’ble Authority

The Ruling was sought on two questions:

Can the applicant continue making inter-State supplies from its Uttar Pradesh registration or separate registration is required in the State of Rajasthan?

What shall be the Tax treatment of inward supplies where:

i) Goods are supplied from Uttar Pradesh to Rajasthan.
ii) Goods are procured and delivered within Rajasthan.

Brief Arguments by Applicant

Regarding Separate registration in Rajasthan
The applicant contended that no separate GST registration is required in Rajasthan. Reliance was placed on Section 22 of the CGST Act, 2017 read with Section 2(71), which defines the "location of supplier of services." It was argued that the applicant's principal place of business is in Uttar Pradesh and the works contract services are supplied from that registered place of business. Since no fixed establishment or office exists in Rajasthan, the location of the supplier continues to be Uttar Pradesh. Although the place of supply for works contract services is Rajasthan, being the location of the immovable property, the applicant submitted that the place of supply alone does not create an obligation to obtain registration in Rajasthan.
Regarding tax on Inward Supplies
The applicant contended that the applicable tax on procurement of goods should depend upon the mode of procurement. Where goods are purchased from a supplier in Uttar Pradesh and are directly dispatched to the project site in Rajasthan on the applicant's instructions, the transaction is covered by Section 10(1)(b) of the IGST Act as a 'bill-to ship-to' transaction, and accordingly the supplier should levy CGST and SGST of Uttar Pradesh.
Conversely, where goods are purchased from a supplier located in Rajasthan and delivered within Rajasthan, then IGST should be charged in terms of Section 10(1)(b) of the IGST Act 2017.

Findings and Judgement

Regarding Registration Requirement in Rajasthan
The Authority analyzed the following provisions in light of the facts:
Section 22(1) of the CGST Act, 2017 mandates registration in the State from where taxable supplies are made, subject to turnover threshold. Further, Section 2(71) of the CGST Act, 2017 defines the 'location of supplier of services' which is the place of business for which registration has been obtained, or in case of a fixed establishment elsewhere, the location of such fixed establishment. In the present case, the Applicant has not established any office or fixed establishment in Rajasthan. All contractual, billing, and management activities are carried out from Lucknow, Uttar Pradesh.

Accordingly, it was ruled that the 'location of supplier' for SCDL is Uttar Pradesh. Registration in Rajasthan is not required merely because the construction site is situated in Rajasthan

Regarding tax treatment of Supplies
It was held that

Where goods involve movement from Uttar Pradesh to the project site at Rajasthan: Such supply constitutes an inter-state supply and shall be liable to IGST under the IGST Act, 2017.
Where both the supplier and the recipient are located within Rajasthan and delivery is made within the State: Such supply constitutes an intra-state supply and CGST and SGST shall apply.

Comments

GST update /2026-27/0047

Brief Facts of the Case

Relevant Section

Question before Hon’ble Authority

Brief Arguments by Applicant

Findings and Judgement

Opinion

Author’s Comment

Post a Comment

Query