Renting of Commercial Properties

[Kaustubh Karandikar]

XYZ (Maharashtra) is the owner of commercial properties situated within as well as outside Maharashtra. These properties are given on rent for commercial use. XYZ is having his office in Mumbai which is registered with GST for issuing Tax Invoice for rent against these properties. 1) Whether XYZ is required to declare all properties within Maharashtra given on rent as additional place of business? 2) Whether XYZ is required to take separate GST Registration for properties outside Maharashtra or he can issue invoice under the GST Registration of Mumbai by charging IGST?

AI Summary

Place of Supply rules determine whether GST registration and IGST charging apply to inter state commercial property rentals.
Whether a registered Mumbai-based owner must declare rented immovable premises as an additional place of business and whether separate State registrations are required for properties located outside the registered State depends on statutory registration criteria and place-of-supply rules. One line of advice treats such properties as additional places of business and calls for separate registration absent an establishment outside the registered State; another relies on place-of-supply rules to require Statewise registration; a third view treats rented properties not used for the owner's business as not constituting additional places of business and allows charging IGST from the existing registration for inter state rent.