CGST/SGST or IGST

This discussion clarifies the Goods and Services Tax (GST) implications when a Chennai-based housing society rents open space to a Hyderabad-based company for hoardings. The key question is whether CGST/SGST or IGST applies. Experts explain that as per Section 12(3)(a) of the IGST Act, the place of supply for services related to immovable property is where the property is located. Therefore, since the open space is in Chennai, CGST and SGST are applicable, even though the recipient company is in Hyderabad.