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Renting of immovable property in RCM


Bhargav Nirmal   26 March 2020

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immovable property is out side the scope of GST so why service provided by central gov. , state gov., by way of renting of immoveable property to register person is liable to pay tax under RCM ?

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NAVEEN CHAND (Just keep going. You never know how far you can go.)     26 March 2020

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it is covered under clause (5a) 

Services (Renting of Immovable property) 

Service supplied to registered person >> GST under RCM is payable by such Registered Person

Service supplied to unregistered person >> GST is payable under Normal Charge by Govt or Local authority 

 

Bhargav Nirmal   26 March 2020

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But immovable property is outside scope of GST so why in this case imposed GST ?

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RAJA P M ("Do the Right Thing...!!!")     26 March 2020

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What is Your meaning for "immovable property is out side the scope of GST"...?

Bhargav Nirmal   26 March 2020

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As per definaton of good, evry kind of moveable property & as per defination of service, other that good so in good & service, immovable property is not included ?

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RAJA P M ("Do the Right Thing...!!!")     26 March 2020

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If it's out of GST then how is govt define properties under residential and commercial...?

Bhargav Nirmal   26 March 2020

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I really don't know but section 7(2) specifically say that not in contain that Notwithstanding anything contained in sub-section (1), shall be treated neither as a supply of goods nor a supply of services. & GST is levied in good & service only .

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RAJA P M ("Do the Right Thing...!!!")     26 March 2020

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Are You refer sec 2(119)...?

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Pankaj Rawat (GST Practitioner)     26 March 2020

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Dear Bhagav
It's taxable under RCM because the particular service is being Notified by Issuing Notification 3/2018 CT (R) .

In Schedule III renting of Immovable property is not prescribed. it's sale of land which is put in the schedule III.

Let's take example of Actionable claim which is also put under Schedule III but Actionable claim ie lottery ,Betting & gambling is taxable (as prescribed therein)

As per Definition of Services prescribed in Section 2(102) means anything other than goods & Securities but INCLUDES RELATING TO THE USE OF MONEY..............

and In GST the taxability is arises when supply is made & if read Section 7 , the lease, rental is supply of Services.

Bhargav Nirmal   26 March 2020

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Good included actionable claim so that actionable claim transfer to schedule III but why any service relating to immoveable property levied tax when immovable property is outside of scope of GST ?


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