IGST or CGST & GST under RCM for residential dwelling

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Kritka Jain (Querist)
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02 August 2022 Good Morning Sir,
I have a query.
Recently Gov. notified that residential dwelling will no more be exempted and the registered party has to pay gst under RCM
A company i.e. STARKE INDUSTRIES is registered in Karnataka and they pay lease / rent for their employees residing at UP ( Please note right now company is not registered in UP)
Query 1 :- If immovable property is located in a 'state where STARKE INDUSTRIES is not registered' i.e. in UP and location of supplier (LOS) is also in such state i.e. UP then CGST and SGST is required to pay being an intra state supply. So how liability of CGST and SGST would be paid while company is not registered in such state? Or company will pay IGST? kindly tell the section which need to be gone through
Query 2: - If immovable property is located in a 'state where STARKE INDUSTRIES is not registered' i.e. UP and location of supplier is in MP. Then what will be levied i.e. whether IGST or CGST & SGST
Kindly have a look at the queries I will be highly obliged.

Udaya Chandran

Udaya Chandran (Expert)
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02 August 2022 As per my opinion,

Query No.1: GST registration is required in the state where the immovable property is located as the place of supply is the place where the immovable property is located.

Query No.2: CGST & SGST under RCM shall be payable.

Kritka Jain

Kritka Jain (Querist)
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03 August 2022 I think for
Query 1 :- it will be IGST because as per Sec 5(4)
SECTION 5(4) of IGST Act, 2017 says: "The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both."

As this section says that " if he is the person liable for paying the tax in relation to the supply of such goods or services or both."

So i think it will be IGST

Query 2:- same IGST as mentioned in Query 1

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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03 August 2022 Query no 1:
Supply is intra state as both LOS and POS are in same state i.e. UP. POS in case of immovable property is the location of such property which is UP and accordingly C+S will be charged.
Query no 2.
Supply would be inter state as both LOS and POS are in different states i.e. UP and MP. POS continue to be UP and so supplier of service who is located at MP will be charging IGST. SGST component will go to UP state and not to Karnataka state irrespective of company registration at Karnataka. If billing is made in the name of the company the supplier will be required to show POS in GSTR-1 as UP and not Karnataka so that SGST component of IGST goes to consumption and destination i.e. UP.

Place of supply is not a determinant of requirement for registration so no separate registration at UP is required just for providing rental service unless there is a fixed establishment there.

Kritka Jain

Kritka Jain (Querist)
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03 August 2022 Sir,
here the supplier of the service is unregistered party. how can he show it in his GSTR 1

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