In re Thermo Fisher Scientific India Private Limited (GST AAR Odisha)
Odisha Authority for Advance Ruling (AAR) has determined that M/s. Thermo Fisher Scientific India Private Limited is required to obtain GST registration in Odisha, concluding that the company’s operational setup in the state constitutes a ‘place of business’ and a ‘fixed establishment’ under the GST Act.
The ruling, which followed an application for advance ruling by the company, addresses a series of questions regarding the company’s operations in Odisha, specifically concerning its repair and maintenance services provided to local customers.
Read AAAR Order in this case: Temporary Spare Parts Storage is Incidental, Not Fixed Establishment for GST: AAAR Odisha
Background of the Case
Thermo Fisher Scientific, a company with its head office in Maharashtra and a registered office in Bhubaneswar, is engaged in the sale of analytical equipment and provides post-sale repair and maintenance services under Comprehensive Maintenance Contracts (CMC) and Annual Maintenance Contracts (AMC).
The company’s business model involves its Maharashtra head office entering into maintenance contracts with customers in Odisha. For these contracts, the head office raises tax invoices and collects payment. To fulfill the service obligations, the company employs Field Service Engineers (FSEs) who are stationed in Odisha. These FSEs conduct maintenance visits and, if necessary, spare parts are dispatched from the company’s central warehouse in Maharashtra, either directly to the customer or to the FSE’s location in Odisha. The FSEs also maintain a temporary stock of spare parts and a toolkit at their location.
