Place of supply

[Kaustubh Karandikar]

XYZ (Maharashtra) had given a Commercial property in Mumbai on rent to PQR for their office. PQR is registered with GST in Daman as a manufacturer. XYZ is issuing invoice to PQR in the name of office address in Mumbai and treating them as URD since PQR is not registered with GST in Maharashtra being having only office in Mumbai. For the rent charged, XYZ is charging CGST + SGST. Is it correct or they need to charge IGST?

AI Summary

XYZ Correctly Charges CGST and SGST on Mumbai Property Rent Under IGST Act Section 12(3) XYZ, based in Maharashtra, rented a commercial property in Mumbai to PQR, a GST-registered manufacturer in Daman. XYZ invoices PQR using the Mumbai office address and considers PQR unregistered in Maharashtra for GST purposes. Consequently, XYZ charges CGST and SGST on the rent. A forum discussion clarified that, according to Section 12(3) of the IGST Act, 2017, the place of supply for services related to immovable property is the property's location. Therefore, since the property is in Maharashtra, charging CGST and SGST is correct.