Charging igst on service of rental of immovable property

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Sashi

Service

17 Points Posted on 18 January 2018

I am doing business of rental of immovable property on commercial purpose i.e. marriage hall, etc where parties performing their program from inter state or intra state.

For parties who conducted their business promotional program (GST Registered Parties) at my premises, I charge IGST as they wanted to take credit at their state, but my CA asked me not to charge IGST instead charge CGST/SGST. In this case how can paty take credit? for tax paid for business promotinal purposes??

anybody can answer? My CA asked me to revise bill from IGST to CGST

Replies (10)

Ajay Kumar Maggidi

Manager - Finance & Accounts

2178 Points Posted on 18 January 2018

Hi Shashi, Type of GST to be Charged is subject to place of supply. Place of Supply Depends on Location of Receiver and Supplier. If the Registered Address of Recipient is same state as you CGST & SGST to be charged. And Vice Versa. Hope It is Clarified your query.

Reesav

Chartered Accountant

44 Points Posted on 18 January 2018

Please clarify whether you are providing only rental services of immovable property or you are also organising the event for the customers.

Reesav

Chartered Accountant

44 Points Posted on 18 January 2018

Please clarify whether you are providing only rental services of immovable property or you are also organising the event for the customers.

Sashi

Service

17 Points Posted on 18 January 2018

I,m doing business in Gujarat state my auditorium situated in Gujarat, but one Party of Rajasthan who have GST registration at Rajasthan taken my premises for their business function, I have charged 18% gst on rent as Party is registered at different state, but my ca asked me to change igst to cgst n sgst , in this case how outside party get tax credit?

Reesav

Chartered Accountant

44 Points Posted on 18 January 2018

As you are only providing renting services you should charge cgst & sgst in your invoice. The receiver will not get credit in this case. He has to take ISD registration if he wants to take that credit in rajasthan.