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Gst on renting of immovable property

03 January 2019

one of my gujarat based client has rent income exceeding 20 lacs and he is registered under gst.

he has given a property (based also in gujarat) on rent to a company registered in delhi. the company has only one registration in delhi.

how to make invoice for the same ?

is it possible to charge igst? or he has to consider that company as unregistered and charge sgst and cgst as i think it would be wrong to charge cgst and sgst to delhi based company

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6 Replies

Vatsla Alagh (1545 Points)
Replied 03 January 2019

Place of supply is gujarat so CGST/SGST to be charged. Invoice will be issued after charging GST but company cant take credit for the same

mahipal m. chande (ca) (216 Points)
Replied 03 January 2019

is it possible to charge igst in bill while the dealer is having the registration in delhi only?

it is state code 24 to state code 07

pritesh (CA Final student) (7101 Points)
Replied 03 January 2019

yes you can charge igst
..no need to registration in Bangalore.

If the landlord is registered in a different state than the state in which the property is located – then this would be a case of inter-state transaction and therefore IGST @ 18% would be levied.

For example: If Mr. Karan Batra who is registered for GST in Delhi has given a property on Rent in Gurgaon, Haryana, IGST @ 18% would be levied in this case. It is not necessary for the landlord i.e. Mr. Karan Batra to register for GST in Haryana as well

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 03 January 2019

no you cannot charge IGST as property and landlord both are in Gujarat..

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 04 January 2019

No You cannot charge IGST , As per Section 12 (3) IGST Act , the POS is the Location of Immovable Property . Hence CGST /SGST is applicable.

You can mention GSTN of Delhi but Put the Place of Supply Gujarat In Tax Invoice .

Ravi SADhiyan (Practice) (4510 Points)
Replied 04 January 2019

Originally posted by : mahipal m. chande
	one of my gujarat based client has rent income exceeding 20 lacs and he is registered under gst. he has given a property (based also in gujarat) on rent to a company registered in delhi. the company has only one registration in delhi. how to make invoice for the same ? is it possible to charge igst? or he has to consider that company as unregistered and charge sgst and cgst as i think it would be wrong to charge cgst and sgst to delhi based company