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Which tax to apply cgst, igst or sgst ?

IS Kakar (B.Com) (109 Points)

17 June 2017

I have two places given on rent, one in gurgaon and other one in delhi. Please inform which tax will be charged on invoice for both parties, whether it will be CGST, IGST or SGST ?

My GST number is registered in delhi

Rent parties

1. Delhi -

2. Gurgaon -

Kindly clear my doubt

Thanks

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8 Replies

janaki suresh B (Partner) (90 Points)
Replied 17 June 2017

According to my understanding with GST:

Renting of Immovable property is service.

Place of supply of service in relating to renting of immovable property is location of Property

So as you registered in Delhi, rent income for delhi will attract CGST & SGST and rent from gurgaon will attract IGST.

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akash behera (JUNIOR ACCOUNTANT) (16 Points)
Replied 17 June 2017

I just want to know, wheather the final or last stage consumer can show the INPUT CGST , IGST, SGST in there books of entry( Like GST on Electory Bill, GST on Bank Charges, GST on Purchase of Asset), or maintain as per VAT Recorded. Because as per VAT the total cost incurred for Purchase of Asset or Service added to the head. so what treatement shall use? Please Explain.

IS Kakar (B.Com) (109 Points)
Replied 17 June 2017

Thanks for the reply, please inform incase of invoice of delhi will I have to charge 18% tax for both CGST and SGST ? or it will be 9% each ?

Thanks

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 17 June 2017

Originally posted by : IS Kakar
	Hi Thanks for the reply, please inform incase of invoice of delhi will I have to charge 18% tax for both CGST and SGST ? or it will be 9% each ? Thanks

it will be 50-50 i.e. SGST 9% & CGST 9%. Delhi & pauducherry are have legislature.

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venkateswaran.m (Sr. Audit Manager.) (52 Points)
Replied 17 June 2017

In any case Each CGST and SGST have 50% of IGST Rate. In other words CSGT+SGST=IGST rate. In your case CGST 9% SGST 9% for Delhi property where IGST 18% for Gurgaon( I understood that Delhi and Gurgaon are in different states) .

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Aseem (CA) (49 Points)
Replied 20 June 2017

You will have to register for 2 GST states (2 registrations). Delhi & Haryana with the address of your rental property as business place.

Then charge CGST and SGST for both rental incomes and file 2 seperate returns for the 2 registrations.

Rental service cannot move accross states (like a CA services) nor can it be provided from your residence. (You cannot charge IGST). Your current service tax registration is also incorrect/incomplete as you may have mentioned only 1 rental address for both or your residence as business premises which is wrong. Most people followed this same mistake (since service tax was going to the central govt.) as you have done in the past. Kindly rectify it asap.

Regarding rates, it be 18% total -see attached file page 4 entry

36. All other services not specified elsewhere 18%With Full ITC

(please check if its 9% for CGST & 9% for SGST or something else & share the link or govt. notification)

Attached File : 156496 20170620125258 schedule of gst rates for services.pdf downloaded: 291 times

ravindra bhat (propreitor) (22 Points)
Replied 13 September 2017

can any one please let me have clarification on the following:

My client let out a property in Bangalore for a company based out in Hyderabad. They dont have Karnataka GST registration. What type of GST my client has raise in invoice

Thanks in advance

shivanshu gupta (student) (28 Points)
Replied 08 October 2018

sir can you please provide me with any legal backing/provision supporting your view of separate registration in each State as I also have the same view but not enugh legal support to prove it. Majority of the opinions are to charge IGST on rent.