Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

GST on rent

22 November 2018

A in Maharashtra having shop in Maharashtra given on rental to B in Chennai, whether A should charge cgst/sgst or IGST to B while issuing rent bill

Reply
Follow
Share

4 Replies

Hitesh (Student) (3549 Points)
Replied 22 November 2018

Place of supply is Chennai as it services relating to immovable property...since A is in Maharashtra and B is in Chennai my take is that A should charge IGST

Upgrade to CAclubindia Pro. Subscribe Now!

CA Sachin M Jain (CA | GST | Refunds | Advisory | Litigation) (1337 Points)
Replied 22 November 2018

Dear Satish ji, if the shop (immovable property) is located in the state of Maharashtra then Mr A needs to charge CGST + SGST.
As the place of supply is the place where immovable property is located. Also Mr B will be able to take ITC in only if he registered in Maharashtra!

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 22 November 2018

As per section 12(3) IGST Act:
POS will be location of Immovable situated
Hence "A" has to charge CGST/SGST

Kripesh Powar (12 Points)
Replied 22 November 2018

Dear Sir,

Our firm is situated in maharashtra & client(Bill to) having Registration in Maharashtra but place of supply is out of mahrshatra.(Karnataka or tamilnadu Etc)

Whether we have to charge IGST or CGST+SGST.

Pls Suggest on above. Thanks in Advance.