Registration requirement and Eligibility of ITC

[Sneha 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 .

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.