TaxTMI 
TaxTMI 
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?
Type of GST to be charged
02 Feb 2019 
4 Replies 
1143 Views Asked by
Place of supply rules: rent for immovable property is taxed at the property location, requiring CGST and SGST.
Services directly related to immovable property are supplied at the location of the property under Section 12(3) IGST Act; rent for the Delhi office is therefore taxable as intrastate supply attracting CGST and SGST. Recovery of that rent from a third party does not change the place of supply, though it affects which establishment can claim input tax credit and may require appropriate intercompany or establishment-level invoicing to align registration and credit. (AI Summary)
Services directly related to immovable property are supplied at the location of the property under Section 12(3) IGST Act; rent for the Delhi office is therefore taxable as intrastate supply attracting CGST and SGST. Recovery of that rent from a third party does not change the place of supply, though it affects which establishment can claim input tax credit and may require appropriate intercompany or establishment-level invoicing to align registration and credit. (AI Summary)