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GST on rented property

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

29 June 2021

XYZ(Proprietor) is owning a commercial property in Mumbai and having GST Registration for the same. XYZ has given this property on rent to PQR(Delhi) who is registered under GST in Delhi. XYZ while billing to PQR for this rented property in Mumbai, XYZ need to charge CGST + SGST or IGST?

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8 Replies

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 29 June 2021

in case of immovable property, as per the provisions of section 12(3) of IGST Act, place of supply wll be the place where such immovable property is located so in your case the property is located in mumbai, maharashtra. Therefore place of supply will be maharashtra and accordingly you will charge IGST from tenant in Delhi.

1 Like

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 29 June 2021

Assuming xyz is registered in Maharashtra will be charging cgst & sgst.

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Imthias ahamed Kormath (910 Points)
Replied 29 June 2021

The quality or type of business not revealed.unless which may consider as property tax diversion by xyz.

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)
Replied 29 June 2021

in my view since place of supply is maharashtra as rightly said by you, but in that case CGST + SGST need to be charged. your views please

Manish (CA) (1076 Points)
Replied 29 June 2021

Place of supply is Mumbai as it is an immovable property.

You will charge SGST+CGST whatever the location of PQR is.

veerendar singh (tax consultant) (3301 Points)
Replied 29 June 2021

He will charge cgst and sgst since it is an intrastate supply

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 30 June 2021

In term of Section 12(3) IGST Act , POS in relation to Immovable Property is location of Property located.

Hence in this case the XYZ is registered in Maharashtra & the property is located in Maharashtra , the POS will be Maharashtra, so CGST/SGST is applicable.

1 Like

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 30 June 2021

Yes I correct myself, CGST+SGST applicable on the basis of place of supply provisions under section 12(3) as I have mentioned earlier. IGST was wrongly mentioned.