Type of GST to be charged

[Kaustubh Karandikar]

XYZ (Mumbai) had paid rent towards their Delhi Office taken on rent and Delhi Office had taken input tax credit of the CGST + SGST charged in the Rent Invoice of the landlord. XYZ(Mumbai) had subsequently recovered the amount of rent paid of the Delhi office from their sister concern PQR, Pune by issuing a Service Invoice. XYZ need to charge CGST + SGST or IGST?

AI Summary

XYZ's Delhi Office Rent Subject to CGST and SGST; Mumbai Cannot Claim GST Credit, Consider IGST for Invoicing Options. A discussion on the appropriate type of GST to charge for a rent transaction involving XYZ's Mumbai and Delhi offices and their sister concern PQR in Pune. The consensus, led by Rajagopalan Ranganathan, is that since the immovable property is in Delhi, CGST and SGST should be charged, despite the rent being recovered from PQR. XYZ cannot claim GST credit as it is based in Mumbai. Other contributors suggest that Delhi should invoice PQR directly, or if Mumbai invoices, IGST should be charged due to the location of the supplier and place of supply.