Registration requirement and Eligibility of ITC

[CASUNIL BHANSALI]

A registered person owns immovable property located across multiple state, is it necessary for them to obtain registration in each State, regardless of whether their business pertains to rental activities or any other activity?

Additionally, if the registered person is not liable for registration in the location where the property is situated and charge IGST. Can the recipient of such services still claim Input Tax Credit (ITC), even if the place of supply (POS) differs from the State of Recipient .

[Shilpi Jain]

Registration in every State is not mandatory as supply/service is being provided from the place of his residence or normal place of business itself. He is not required to be every State where the properties are located to provide the leasing services.

[Shilpi Jain]

IGST will be charged with PoS being the State where the property is located.

Law does not spell clearly ineligibility of credit in such cases.

Though logically department would deny credit to a recipeient if he is in a State different from the State of PoS

[Shilpi Jain]

Such recipient could be asked to take ISD registration and distribute credit to his other registrations.

[KASTURI SETHI]

Sometimes it happens that service recipient is not able to utilize IGST. That aspect is also to taken care of. So either ISD or separate registration in each State would enable the service recipient to use ITC.

[Padmanathan KV]

Personally, I would suggest to take registration in the State in which each property is located and issue CGST and SGST invoice to corresponding tenants. 

AI Summary

Place of supply rules determine IGST liability on leased immovable property, affecting Input Tax Credit access across states. Registration in every State is not automatically required where leasing services are provided from the supplier's residence or normal place of business. The Place of Supply for immovable property is the State where the property is located and IGST may be charged. The law is unclear whether a recipient registered in a different State can claim Input Tax Credit; tax authorities may deny such credit. Practical solutions include recipient ISD registration to distribute credit or obtaining separate registrations in property States and issuing CGST and SGST invoices.