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Registration required????

08 April 2020

I am at andhra and I have a property in Tamilnadu and I am collecting rent above 20 lakhs from the person who taken my property on rent in Tamilnadu. I need to take registration in Tamilnadu?

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41 Replies

Shivam RC (Student) (23683 Points)
Replied 08 April 2020

Is it Commercial Property or Residential Property ???

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mvramana (Student) (285 Points)
Replied 09 April 2020

Are you a registered person in Andhra?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 09 April 2020

turnover > 20 lakhs need to get register

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 09 April 2020

but renting of residential dwelling for use of residence is exempt

Important Note : Dwelling does not include Hotels , Inn , Guest House etc

Ashish Patnaik (4 Points)
Replied 09 April 2020

It is a commercial property and yes I am registered in AP

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suraj (Student CA Final ) (288 Points)
Replied 09 April 2020

Since you are making taxable supplies from Tamilnadu ( Place of Supply is location of Immovable property) where your Aggregate turnover exceed 20lakhs .You need to take registration in Tamilnadu
Note: Aggregate Turnover includes all taxable as well as exempt supply.

mvramana (Student) (285 Points)
Replied 09 April 2020

Not required reg in Tamilnadu
you can raise IGST invoice thereupon.

1 Like

harsha reddy (16 Points)
Replied 09 April 2020

No, as limit in Tamil nadu is if taxable suply exceeds 40lakhs.if ur turnover exceeds 40lakhs u need to liable for gst registration. as of now u r turnover is 20 lakhs, if it exceeds 40 , u r liable.

suraj (Student CA Final ) (288 Points)
Replied 09 April 2020

Dear Haraha Reddy Sir, 40 lakh limit if for supply of goods . Here Rent is not Goods its service so limit 20 lakh would apply

1 Like

harsha reddy (16 Points)
Replied 09 April 2020

Yes, for the service it is 20 lakhs, liable for registration

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Shivam RC (Student) (23683 Points)
Replied 09 April 2020

• First let's discuss the taxability Provision :

As per Notification No. 12/2017 - CT( RATE ), dated 28.06.2017, Renting of Residential House Property for Residential purpose is EXEMPT from GST. But kindly note no such exemption is given in case of Commercial Property. Any income ( by whatever name it is called ) received from Commercial Property is taxable under GST.

Therefore, your rental income received from commercial property located in Tamil Nadu will be taxable.

• Now let's discuss about the PLACE OF SUPPLY ( POS ) :

As per the Provision of Section 12(3) clause (a) of the IGST Act 2017, the Place of Supply incase of Immovable Property shall be the location at which the immovable property is "LOCATED". Hence, your POS will be Tamilnadu.

Since you are registered in Andhra Pradesh, you have to also apply for registration in Tamilnadu as well because Registration under GST is state wise. So apply for Registration in Tamilnadu.

• Determination of SUPPLY OF GOODS or SUPPLY OF SERVICES :

As per Paragraph 5 clause (a) of SCHEDULE II of the CGST Act 2017, "RENTING OF IMMOVABLE PROPERTY" is treated as Supply of "SERVICES".

• Determination of Aggregate Turnover :

As per the Provision of Section 22 of the CGST Act 2017, a person needs to apply for GST Registration if his AGGREGATE TURNOVER exceeds Rs. 20 lakhs.

However, the threshold limit for Registration was increased to Rs. 40 lakhs incase of Suppliers dealing in "EXCLUSIVE SUPPLY OF GOODS" vide Notification No. 10/2019 - Central Tax, dated 07.03.2019, w.e.f. "01.04.2019."

But there was no change in threshold limit with respect to Supplier of Services. It is still Rs. 20 lakhs.

CONCLUSION :

From the above explanation, we conclude that your :

Aggregate Turnover : Exceeds Rs. 20 lakhs.
Place of Supply : Tamilnadu.
Supplier : Supplier of Services.
GST Rate : 18%
Registration Required : YES.
Place of Registration : Tamilnadu.

Best Wishes,
Shivam RC.

3 Like

RAJA P M ("Do the Right Thing...!!!") (128083 Points)
Replied 09 April 2020

Yes... I fully agreed to Mr Shivam RC.,

@ Mr Shivam RC.,

Very well reply with detailed solutions. Very Good going...

Keep it Up Dear...
Good Luck...

**STAY HOME - STAY SAFE**

1 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 April 2020

Iam agree with Mr Shivam reply except , on the point that Registration can be obtain in Tamil Nadu only .
As in term of Section 22 of CGST Act , every Supplier shall be liable to be registered under this act FROM WHERE HE MAKES A TAXABLE SUPPLY OF GOODS OR SERVICES.

So in ref to above , "From where he makes supply " you obtain Registration in Andhra can supply Services from Andhra & in term of Section 12(3) IGST Act , the landlord is liable to Charge IGST as the POS is where the immovable property is situated.

The only problem in above that landlord whose Property is in Tamil Nadu but got himself registered in Andhra cannot avail ITC on any expenses incurred related to Property in Tamil Nadu as the POS will be always where the property is situated.

(In above kindly conjoint read Section 2(85) CGST Act & Section 2(15) IGSTAct)

1 Like

mvramana (Student) (285 Points)
Replied 09 April 2020

We need to analyse Location of Supplier u/s.2(15) and Fixed Establishment u/s.2(7) of IGST Act, read with Place of Business u/s.2(85) of CGST Act.

Since he is already registered in Andhra, Location of supplier (LOS) is Andhra Pradesh where his usual place of business (POB) is carried on which is also Andhra Pradesh.

In case if he had any fixed establishment in Tamilnadu, then POB would also be Taminadu apart from the POB in Andhra Pradesh.

In the given query, .LOS and POB are located in Andhra and he has no any such fixed establishment in Tamilnadu.

Hence he is not required to get registration in Tamilnadu and the transaction is Interstate activity and IGST invoice is enough to raise.

Thank you