Wrong place of supply on Invoice by Supplier

[ROHIT GOEL]

Dear Sir,

M/s ABC Associates is paying rent for a property in Punjab whereas it is registered in Haryana. The landlord is registered in Punjab and issuing IGST Invoice mentioning place of supply as Haryana (i.e. location of recipient i.e. ABC Associates).

As per IGST Act, place of supply should be Punjab i.e. location of immovable property and as such place of supply is wrong on tax invoice. However, ABC Associates has claimed ITC on such invoice. Whether said ITC claim is liable for reversal owing to incorrect place of supply on invoice?

AI Summary

Place of supply errors can jeopardize input tax credit claims where supplier invoices IGST instead of intra state tax.
Risk to input tax credit arises when a supplier invoices IGST and lists the recipient's location as place of supply for rent of immovable property situated in another State; statutory place of supply rules assign supply to the property's location, and incorrect invoicing may lead to denial of credit, heightened scrutiny where collusion or deliberate tax structuring is suspected, and potential need for registration in the State of the property.