A person is registered in Gujarat and provider of works contract services. Now he has received a sub-contract from the principal contractor for maintenance of railway line in the state of Maharashtra. The person will have to make purchases from Maharashtra and use the same for providing the above services The question arises is that whether a registration as a casual taxable person in Maharastra is advised here assuming the work shall get completed in 6 months. Or the above transaction be treated as inter state supply and regarding availing ITC of inputs the Bill-to-ship-to model may be used....i.e. Bill to Gujrat GSTIN and ship to the site of work. Request your opinion

Reply-There is no need to obtain a separate registration (in a state other than principal place of business) merely for executing a works contract if there is no intention to have a fixed establishment in that particular state. Service provider can raise invoice with IGST. If taxpayer has a fixed place of business in that state (Maharashtra in above case) you have to take separate registration. Casual registration is not advisable. 

Refer advance ruling pronounced by AAR karnataka in matter of T and D electricals dated 31.03.2020.

However ITC of local purchase from Maharashta will not be available to the taxpayer. However, he can purchase goods under bill to- ship to mode by paying IGST and in that case he will be able to avail ITC under IGST.