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Inter-state transaction or intra-state transaction

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samkasvala

proprietor

111 Points Posted on 30 August 2021

If Mr. A is residing in Maharashtra state and has GST registration in the state of Maharashtra. Mr . A has commercial building in another state i.e. Gujarat and this building is rented out to school for education activities. Our queries are as under. 1. Whether this transaction is exempt or taxable 2. If taxable then Mr. A can raise Tax invoice from the sate of Maharashtra and charge IGST or Mr. A needs to obtain separate registration in the state of Gujarat and charge CGST and SGST . Presently the taxpayer is raising invoice from Maharashtra and charging IGST.

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Quick Summary

This discussion clarifies GST implications for renting out a commercial property located in Gujarat when the owner is registered in Maharashtra. The consensus is that renting property in another state constitutes an inter-state supply, making it taxable. The owner can raise a tax invoice from Maharashtra charging IGST, and no separate registration in Gujarat is required. The Gujarat property is not considered an additional place of business for the Maharashtra registration.