ABC Limited has different types of business operations related to Transportation and Logistics. It has different divisions operation wise such as Freight Division, Supply Chain Division, Shipping Line, Cold Chain, Energy. All such divisions are parts of the ABC Limited. Apart from divisions ABC Limited also have some Joint Ventures some other companies. All divisions and JVs presences is in PAN India. Company has taken Division wise GST Registration under same PAN. Total numbers of GSTIN are more than 150 in All states and UTs.
There are more than 150 properties (Commercial Building) in India of ABC Ltd. 15 Properties are on long term lease (99 years) and 5 properties are on medium term lease (30 years). Other 130 properties are owned. These properties have been capitalized in the books of ABC Ltd and falls under Corporate Office in segment reporting. In Balance Sheet, it is covered under Non-Current Assets. These properties are occupied by different Divisions (Verticals) for their business purposes as business office, warehouse etc. Some divisions have covered theses properties in their GSTIN as Principal Place of Business/Additional place of business. Also these properties are not covered in GSTIN of Corporate Office. ABC Limited do not charge any cost/price from the division for usage of properties.
if any Property is under construction in any state, Billings are done in Corporate office books. For material for constructions, GSTIN of Corporate office (Haryana) is provided to Vendors and for shipping it's kept unregistered location.
What should be chargeability of GST in this case. On a bird view All divisions is a single company which is using it's own properties for it's business purpose.
- Is there any applicability of GST Cross Charge?
- where any division is using any building (property of company) for it's operations/office use, should the property be covered under division's books instead of corporate office.
- in case of new construction, should it be capitalized under the books of Division who will use it after construction completion, instead of Corporate Office.
- All divisions constitutes ABC Limited and ABC Limited is using it's own property. there should not be any taxation.
- Any other comments.
if cross charge is applicable, location of supply will be different state, but Corporate office is only registered in Haryana State. how billing will be possible.
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