Reverse charge on Residential Dwelling

[Madhavan iyengar]

Dear Sirs

Companies / Persons have GST Regn in the State where factory and Corporate Regd Office is situated and they effect their supplies.

In addition to above they have Sales offices in Different states where there is effectively no supplies taking place. Hence they have not obtained GST Regn in those States

as a result of this new RCM Notification (05/22 dtd 13/07/2022) if they have sales office in Residential Premises in other states will they be liable to pay RCM, will the Section 24 compulsory Regn have any impact

Section 24. Compulsory registration in certain cases.-

Notwithstanding anything contained in sub-section (1) of section 22 , the following categories of persons shall be required to be registered under this Act,-

(iii) persons who are required to pay tax under reverse charge;

Experts kindly give your views

AI Summary

Debate on Reverse Charge Mechanism Applicability for Sales Offices in Residential Premises Under GST Notification 05/22 and Section 24. The discussion centers on the applicability of reverse charge mechanism (RCM) under GST for companies with sales offices in residential premises across different states. Key issues include whether these sales offices, not registered under GST due to lack of direct supply, are liable under RCM as per Notification 05/22, and the implications of Section 24 regarding compulsory registration. Experts debate whether sales offices are distinct entities requiring separate registration and if services like renting residential dwellings to a registered person trigger RCM. Opinions vary on whether registration in one state applies to others and the necessity of GST registration for sales offices not making taxable supplies. The discussion also touches on the interpretation of 'registered person' and the impact of state-specific registration requirements.