Rent invoice

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This query is : Resolved

Mohd Sarfaraz Latibani (Querist)

29 November 2017 We are registered in Telangana State & has taken a workshop in bangalore for some work, but the owner is saying that he will issue invoice as local invoice (CGST & SGST), as we are not registered in bangalore, we are asking him to issue rent invoice in IGST tax
Is it possible? (we don't want to register in Bangalore, as it's a temporary work)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

29 November 2017 As per section 12(3) of GST Act, the place of supply of service in relation to an immovable property shall be the location at which the immovable property is located. so the owner has to issue the invoice is SGST & CGST invoice only.

RAJA P M

RAJA P M (Expert)

30 November 2017 Thank you for the Reply Mr CMA RAMESH KRISHNAN Sir... As per above bills., We can take ITC or not...??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 November 2017 Practically Input credit is not possible in this case, because GST registration in state based, Input is not available because of the following reason

1. As per query, they don't have any registration in Bangalore and very clear they don't want to register since temporary work

2. Rental Invoice is raised with SGST and CGST in Karnataka, so while uploading invoice in GST portal they have to mention the service receiver local GST number then only it will reflect in the service receiver input credit ledger, so service provider has to upload the invoice as B2C( Business to customer) without service receiver lo GST. Incase they want to put the Service receiver GST number in Telangana , site will calculate the IGST, so they cannot choose the same since the invoice was raised with SGST/CGST as per rule.

So input credit is not practical in this case

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RAJA P M

RAJA P M (Expert)

30 November 2017 Thank you for the reply Sir.. Yes... I agreed to You... But, My doubt is.. The GST credit is not available for the Telangana state dealer. But, how to handle the bills in Telangana Dealer...? They ll show it in return or not..? In case shown in return then ITC option select as "INELIGIBLE" or "Eligible"...? If eligible, can reverse the GST in column 11 of GSTR 2 (if available)...? We ll show the details in GSTR returns or not...?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

01 December 2017 They have to show as expenses without taking input credit or mention as ineligible credit. As I replied different state even in GSTR 2 also it will show mismatch since both are in different state.

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RAJA P M

RAJA P M (Expert)

01 December 2017 Thank You for the reply Mr CMA RAMESH KRISHNAN Sir... The GST Tax is not eligible... Also it's applicable for CGST portion or only SGST or both...?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

09 December 2017 Both SGST & CGST portion is not eligible

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