Telangana High Court upholds State wise GST Payments on works contract
The Hon’ble Telangana High Court has ruled that for works contracts spanning multiple states, the supplier must pay GST in each state based on the work executed there. The nature of supply is intra-state for each state based on the work executed.
Importantly, the court also ruled that TDS deductors are not required to deduct tax for works executed in other states. This means that service recipients, if not registered in other states, need not register for deduction of tax and shall deduct tax only on services received in the registered state.
It will be interesting to examine the impact of this ruling on services provided in relation to immovable property by a supplier located in another state.
The copy of the order is as under:
