GST on RCM on rent in a unregistered state

[Vamsi Krishna]

A Ltd is registered in Karnataka as per GST laws. It has taken a premises on rent in Hyderabad for their employees to work. The Hyderabad office does not provide any taxable supplies and hence has not opted for registration. If the landlord of Hyderabad office is unregistered, should A Ltd pay GST on RCM basis. If so, should be IGST or C S of Telangana? The POS and location of supplier remain Telangana

AI Summary

GST Dilemma: Should A Ltd Pay IGST on RCM for Renting Unregistered Property in Hyderabad? A company, A Ltd, registered in Karnataka under GST laws, rents a property in Hyderabad for its employees. The Hyderabad office, which does not provide taxable supplies, is unregistered. The query concerns whether A Ltd should pay GST on a reverse charge mechanism (RCM) if the landlord is unregistered, and whether it should be IGST or Telangana's state GST. Responses vary: one suggests the Hyderabad office should register and pay GST, another says no tax is due as both parties are unregistered, and another recommends A Ltd pay IGST on RCM. Concerns are raised about the burden of registration on landlords with properties in different states.