Place of Service query

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This discussion addresses a query regarding the correct Goods and Services Tax (GST) to charge when a company registered in Uttar Pradesh provides services from a property located in Delhi, owned by a Director's Hindu Undivided Family (HUF) also registered in Delhi. The core issue is whether to charge Central GST (CGST) + State GST (SGST) or Integrated GST (IGST), and why Input Tax Credit (ITC) might not be available in GSTR-2B. The consensus suggests charging CGST and Delhi SGST is appropriate, as the recipient's UP registration doesn't cover Delhi, leading to ITC unavailability for CGST and SGST. However, there's a divided opinion on whether CGST should still be available as ITC.

CA Parul Saxena

CA Parul Saxena (Querist)
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17 February 2021 A co is located in UP having UP Registration. Property is situated in Delhi and the owner is Directors'HUF and HUF Registration too is in Delhi..
1. In the invoice what should be charged CGST+SGST or IGST?
2. We are charging SGST+CGST but in 2B it is showing as ITC not available?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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17 February 2021 Who is charging to whom and for what, please elaborate

CA Parul Saxena

CA Parul Saxena (Querist)
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17 February 2021 HUF is charging to Company for Rent

CA Altamush Zafar

CA Altamush Zafar (Expert)
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17 February 2021 Yes cgst and sgst will be charged and itc will not be available if not registered in that state

CA Parul Saxena

CA Parul Saxena (Querist)
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17 February 2021 Can you please refer any section where it is written that Local gst will be charged but will not be available..

CA Altamush Zafar

CA Altamush Zafar (Expert)
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17 February 2021 Its simple. HUF is charging cgst and Delhi gst. The person registered in up is not registered under delhi gst therefore itc not available.
I am the opinion cgst should be available but opinions are divided on this and department is of the view that cgst will also be not available

CA Altamush Zafar

CA Altamush Zafar (Expert)
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17 February 2021 You can also find one of my articles on this on caclubindia although it is a very early article and a lot of developments have happened after that.
You can mail me for further query

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