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Place of supply of service

07 July 2017

if a person is registered in one state say X and has immovable property located in state Y, and has rented out such property, will he be liable to get registeration no for state Y as well?

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6 Replies

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 07 July 2017

Renting in Multiple States by owner in 1 place.

The pure renting activity could have some possibility of not requiring registration in different States. However if there is an office/ fixed place of busienss the need to register maybe there.

Tghis aspect needs more study. Govt Twitter ( which cannot be used as defense) say not liable.

1 Like

Badrappa Nooli (Accounts Officer) (49 Points)
Replied 07 July 2017

Sir I have a customer in Delhi with GST registration number of Delhi
We are supplying good from Hyderabad, delivery also at Hyderabad only, they have no GST registration in Telangana,
Then now, How can I raise the bill ? With I gst, or CGST & SGST

Giri (Proprietor) (22 Points)
Replied 07 July 2017

Please raise an invoice with Delhi address and GSTIN no. Please charge IGST in the bill.

Ankur Goel (Practice) (16 Points)
Replied 07 July 2017

Hello everyone, Following are my queries:

1. Let's say I am a trader of a machine and I also provide repairs services on the same. Now my clients (registered under GST) are located all across the country and I provide the repair service at their location. Now as per Sec 12 of IGST, what will be the place of supply?

According to me, it should fall under the general category of rules i.e., Location of Service receiver as they are registered under GST. It is only in Sec 13, where they have given specific mention of such kind of transactions which is missing in Sec 12.

2. I have read somewhere that in the case of repairs and maintenance, the Service provider will be required to obtain registration in every state where services are provided. If that is true, does it mean that in case I provide Audit and Assurance service to a company who is located in Delhi when I am located in Bangalore, I will have to obtain registration in Delhi? In that case, there can never be IGST charged by Service providers in any scenario.

NIKHIL (Proprietor) (23 Points)
Replied 08 July 2017

Good questions. Really need clarifications.

sudarshan (CA) (745 Points)
Replied 10 July 2017

you have two verticals one trading and another repair. Trading in other states IGST chargeable. For repair , it is service and by providing in other states, You may require registration as GST is consumption levy and other states may demand their share of GST ie SGST. IF you do it occasionally, you may take registration under casual trader category.