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 immovable property 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

Place of supply determines reverse-charge tax type; supplier location governs whether CGST and SGST or IGST apply.
Place of supply for renting of a residential dwelling is the state where the immovable property is located; that determination fixes reverse-charge obligations. The tax type under RCM depends on the supplier's location: a supplier in the same state attracts CGST and SGST under RCM, while a supplier in another state attracts IGST under RCM. Separate state registration is required if the recipient has a fixed establishment or is a casual taxable person in the property state. An operational avoidance is possible if the employee rents in their own name and the employer reimburses as a perquisite.