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?
GST on rented property
Replies (8)
Quick Summary
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.
Assuming xyz is registered in Maharashtra will be charging cgst & sgst.
The quality or type of business not revealed.unless which may consider as property tax diversion by xyz.
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
Place of supply is Mumbai as it is an immovable property.
You will charge SGST+CGST whatever the location of PQR is.
He will charge cgst and sgst since it is an intrastate supply
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.
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.
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.
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