GST on Rent of immovable property-urgent

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This discussion clarifies the Goods and Services Tax (GST) implications when a Delhi-based company rents property in Noida for its directors. It explains that under Reverse Charge Mechanism (RCM), IGST is payable, with Noida (Uttar Pradesh) being the Place of Supply. The discussion also covers how the renting company (Company Y) should report this transaction in its GSTR1 under the reverse charge option.

CA Parul Saxena

CA Parul Saxena (Querist)

11 October 2022 A company x situated in Delhi is giving rent to a company Y situated in Delhi for its Directors'residence in noida (Company x directors).
My question is :-
1. RCM will be paid by company X then it will be IGST or CGST+SGST?
2. In GSTR1 Company Y will report this supply in GSTR1?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

11 October 2022 1. according to place of supply rules, location of immovable property that is Noida UP will be POS and accordingly RCM will be payable under IGST head.
2. Company Y will show the invoice in the name of company X under reverse charge yes option.

CA Parul Saxena

CA Parul Saxena (Querist)

11 October 2022 For this company Y has to prepare invoice can you please share invoice format under RCM

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