Place of Service Query..

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This discussion addresses a Goods and Services Tax (GST) query regarding the place of supply (POS) for services related to immovable property. A company registered in Uttar Pradesh (UP) rents a building in Delhi, with rent paid by the company to the Directors' Hindu Undivided Family (HUF). The core issue is whether local Delhi GST should be charged, as the property and service consumption are in Delhi, despite the company's UP registration. The portal indicates GST is not available because the supplier's state (Delhi) and recipient's state (UP) differ, but the property is immovable and located in Delhi. The consensus leans towards local GST being applicable due to the immovable nature of the property being located in Delhi, referencing Section 12(3)(a) of the IGST Act. However, it's noted that the UP-registered entity cannot claim input tax credit (ITC) for the CGST+SGST charged by the Delhi-based supplier.

CA Parul Saxena

CA Parul Saxena (Querist)
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30 October 2020 One of our co is situated in UP and hence registration is of there...A building in Delhi is used in the name of the organisation of UP and Rent is paid by the co to Directors'HUF...we charge local GST as the building is situated in Delhi itself...
But on portal in 2B it is mentioned that GST not available and the reason being POS and Supplier's State is Same but receipent state is different...
Is it ok? If yes what to do?

Lekhraj sood

Lekhraj sood (Expert)
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30 October 2020 Yes,it is correct. UP registered person can not claim ITC of CGST+SGST of Delhi.

CA Parul Saxena

CA Parul Saxena (Querist)
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30 October 2020 But it is related to immovable property and property is related in Delhi itself...

Lekhraj sood

Lekhraj sood (Expert)
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30 October 2020 As I understood Director is Delhi and the rented building is in Delhi.Director raises in invoice on UP registered company and charges CGST+SGST. So UP person will not get the credit of Local GST of Delhi. Please specify if the facts are different.

CA Parul Saxena

CA Parul Saxena (Querist)
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30 October 2020 Yes facts are same....inovice is raised by Directors'HUF (Delhi) to UP registered co...so what should be charged local or central gst?
As the service is consumed in Delhi and immovable property is in delhi local GST Should not be levied?
Please share relevant section in support of your answer..

Lekhraj sood

Lekhraj sood (Expert)
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30 October 2020 So, please refer my above reply.

CA Parul Saxena

CA Parul Saxena (Querist)
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30 October 2020 Please share relevant section applicable for the same

Lekhraj sood

Lekhraj sood (Expert)
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30 October 2020 Refer section 12 (3)(a) of IGST Act.

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