Place of Supply and registration in case of Residential dwelling

[THDC India]

Dear Experts,

Please share your expert view in following case:-

Company (registered in GST in Uttarakhand) is paying lease rent for the family of employees posted in non-family station i.e. hilly area. Employees posted to such location belongs to different state. As per latest notification 05/2022 dated 18/07/2022, GST is payable under RCM in case of service by way of renting of residential dwelling to registered person. As per section 13 of IGST Act, Place of supply shall be place where immovable property is located.

In this scenario, if immovableproperty located in UP then CGST and SGST is required to pay being an intra state supply. So how liability of CGST and SGST can be pay off while company is registered in uttarkhand....?

AI Summary

GST Reverse Charge: Must Companies Register in UP for Employee Lease Rent? A company registered for GST in Uttarakhand is paying lease rent for employee families in a non-family station located in Uttar Pradesh (UP). The issue concerns the GST liability under the Reverse Charge Mechanism (RCM) for renting residential dwellings. The primary question is whether the company should register for GST in UP to pay CGST and SGST, as the place of supply is UP. It was suggested that if the company has a fixed establishment or is a casual taxable person in UP, registration is mandatory. Alternatively, employees could rent in their names, with the company reimbursing them, to avoid separate registration. The discussion emphasizes the complexity of GST registration requirements across states.