TaxTMI 
TaxTMI 
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
GST on RCM on rent in a unregistered state
23 Sep 2017 
11 Replies 
3385 Views Asked by
Reverse charge on rent: unregistered interstate landlord can trigger recipient liability to pay IGST under RCM.
If an unregistered landlord in Telangana invoices A Ltd in Karnataka for renting immovable property situated in Telangana, the supply is treated as an interstate taxable service and A Ltd as recipient is liable under the reverse charge mechanism to pay IGST; commentators also note that the landlord may be required to register and that invoicing to the Hyderabad branch or internal billing between offices alters whether Telangana SGST/CGST or IGST applies. (AI Summary)
If an unregistered landlord in Telangana invoices A Ltd in Karnataka for renting immovable property situated in Telangana, the supply is treated as an interstate taxable service and A Ltd as recipient is liable under the reverse charge mechanism to pay IGST; commentators also note that the landlord may be required to register and that invoicing to the Hyderabad branch or internal billing between offices alters whether Telangana SGST/CGST or IGST applies. (AI Summary)