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Use immovable property in india

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Vaibhav

Article

70 Points Posted on 23 April 2022

Hello sir/madam

client use building for business in India and rent paid to owner who is outside India then is this transection attract gst.

please clarify.

Replies (3)

Quick Summary

This discussion clarifies whether GST is applicable when a business in India rents immovable property, with the rent being paid to an owner located outside India. The consensus is that GST will indeed apply. This is due to the place of supply being determined as the location of the immovable property in India, as per Section 13(4) of the IGST Act. As the property is used for business purposes, it constitutes a 'Supply' under Section 7(1)(a) of the CGST/SGST Act, making it liable for tax under Section 9(1).

Rajendra Prasad

Employee Private

1142 Points Posted on 23 April 2022

Yes, GST will attract to the said transaction.

Vaibhav

Article

70 Points Posted on 23 April 2022

Under which section?

Rajendra Prasad

Employee Private

1142 Points Posted on 26 April 2022

As per section 13(4) of IGST Act the place of supply of services directly in relation to an immovable property is place of immovable property. Hence the place of supply is the City in India.

And the services are receiving for the purpose of furtherance of business it will be treated as "Supply" as per section 7(1)(a) of CGST / SGST Act.

And as per Section 9(1) has to levy tax as applicable accordingly has to discharge the liability.