Allocation of One Leased Premise to Two GST Regd. Person

[NISHANT SHAH]

Dear All Experts,

I want to know that whether one premises can be given on lease to two GST Registered person as per GST Act and if so how it can be allotted to them? This premises will be used for solely for storage/warehouse of material/goods only and for movement of goods for sale of goods and not for the purpose of manufacturing of goods.

If this premise can be given on sub-lease to two GST Registered persons, below questions arise from GST point of view.

1)Can both person show same premises as additional place of supply in their GST Registration?

2) How to allocate this premises to both lessee ?

3)How to bifurcate expenses like Water, Electricity etc. between lessee?

4) Any other legal requirement to comply with?

[DR.MARIAPPAN GOVINDARAJAN]

Two or more registrations can be obtained if the said premises shared by the two or more businesses.

Regarding other queries you may approach professionals.

[KASTURI SETHI]

After in agreement with Dr.Givindarajan, Sir, I express my views query-wise as under as under :-

(1) Yes but with demarcation.

(2) By way of agreements/rent deed/lease deed. Separate offices/godowns in the same premises.

(3) By way of installation of sub-meters for water and electricity via agreements.

(4) Go through the following case law:- (This will solve your queries in this context)

2019 (28) G.S.T.L. 338 (A.A.R. - GST) = 2019 (8) TMI 817 - AUTHORITY FOR ADVANCE RULING - KERALA IN RE : SPACELANCE OFFICE SOLUTIONS PVT. LTD.

[NISHANT SHAH]

Thanks sir for such elaborative answer.

[Ganeshan Kalyani]

I agree with views of Sri Mariappan Sir & Sri Kasturi Sir. Both are having sea of knowledge. The best part I acknowledge of them is that they always attempt to give comprehensive reply. Thanks.

AI Summary

Guidance on Leasing Single Premises to Two GST-Registered Entities for Storage: Key Compliance Tips and Case Law Insight. A forum participant inquired about leasing a single premises to two GST-registered entities for storage and movement of goods, excluding manufacturing, and sought guidance on GST compliance. Responses indicated that multiple registrations are possible if the premises are shared, with recommendations to use agreements for demarcation, allocate spaces through rent or lease deeds, and manage utilities via sub-meters. It was advised to consult professionals for detailed guidance. A case law reference was provided for further insight. Participants expressed appreciation for the comprehensive responses and expertise shared in the discussion.