Place of Supply

[S HUSSAIN]

Tax payer is an Architect having place of business in Maharashtra only. He is providing service to customer situated in other state in relation to Infrastructure Planning and Development (i.e in relation to Immovable Property). Whether he is require to issue IGST bill or has to take registration in those state and issue CGST/SGST bill of that state. He does not have any office in other state. All the work in relation to architect service are administrate and managed from Maharashtra only.

If he is suppose to issue CGST/SGST bill of the state where the property is situated, then what will be the issues and remedy if he had issued IGST bill in the previous year.

[KASTURI SETHI]

Your place of supply is where immovable property is located. You are to issue tax invoice charging IGST. You are covered under Section 12 (3) of IGST Act. Pl. go through the following:-

SECTION 12. Place of supply of services where location of supplier and recipient is in India

(3) The place of supply of services, -

(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or

(b) -------------

(c) ------------

(d) any services ancillary to the services referred to in clauses (a), (b) and (c),

shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located :

[Venkataprasad Pasupuleti]

The place of supply would be location of property and the location of supplier would be Maharashtra in your example. If place of supply falling outside the state of Maharashtra, you must issue IGST invoice and need not registered in such state.

[S HUSSAIN]

Thanks a lot for your clarification, if any further clarification on this issue please post the same.

AI Summary

Place of supply for immovable property services requires IGST invoicing and no registration in the recipient state. For architect services directly related to immovable property, the place of supply is the location of the immovable property; accordingly, where the property is located in a state other than the supplier's, the supplier must issue an invoice charging IGST and need not obtain registration in the state where the property is situated solely to issue CGST/SGST invoices.