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Renting of Immovable property

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Karnik Kothari

17 Points Posted on 16 September 2020

My client` s taxable income as per GST crosses Rs.20 Lakh by renting of immoveable Property of commercial nature and therefore he has to take GST number. Now my question is where he has to take GST number i.e. In gujarat or Maharastra?

1. if Client`s Property is situated in maharastra and my client reside in Gujarat and he received rent income of Rs.21 lakh from Maharastra i.e.Property is situated in maharastra and servie receipient is also of maharastra and service provider of gujarat?

2. if service receipient of gujarat and service provider is also of gujarat and Property is situated in maharastra?

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 17 September 2020

As per Section 22 of CGST Act , No it is not mandatory for your client to get Registration in Maharashtra where the property is situated. He can obtain Registration in Gujarat from where he makes Taxable Supply of Services & As per Section 12(3)of IGST Act , the Place of Supply related Immovable property will be where the property is situated , hence your client will raise bill to your Receptient by charging IGST . So even though the client is registered in Gujarat , IGST will be levy.

Note : But in this case the only disadvantages to your client is that any Inward Supply in relation to Immovable Property , the ITC on same will be not available to your client, the POS is property Situated , which is in Maharashtra & your client is registered in Gujarat.

So to avail any ITC in relation to inward supply related to property , your client need to obtain Registration in Maharashtra.