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Intra Branch Rent (Service) Query

Pratik Joshi (73 Points)

01 March 2018

is rent paid by one branch to another branch of a same institution (Trust) taxable for GST ???

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10 Replies

Dhananjay saraf (Chartered Accountant) (254 Points)
Replied 01 March 2018

If separate GST numbers of branches then YES

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RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 01 March 2018

yes, the supply of service is taxable even to the branch.

Pratik Joshi (73 Points)
Replied 01 March 2018

here, institution is an educational trust, and branches are it's colleges and schools, and rent is paid by schools & colleges to the Institution.
in this scenerio, is it liable for GST ?

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 01 March 2018

I think it is liable to pay gst while the payment of rent has happened.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 01 March 2018

Both are under One GSTIN then GST not applicable...

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ramakrishna (Professional Accountant ) (65 Points)
Replied 02 March 2018

This is like stock transfer i.e transfer of goods ( now supply of both goods and services) from one branch to another branch. If both are distinct persons section 25, cgst. Then it is a supply of goods and services hence GST is leviable. However, they are entitled to claim ITC.