GST ON RENTING OUT OF IMMOVABLE PROPERTY

[NAMAN DOKANIA]

Mr X rents out immovable property located in City A to Mr. Y. Mr. X is staying in City A. But have buinsess in City B and registered in City B. Mr X is not having any gst registration in City A. So, Mr. X needs to get registered in City A for renting of premise, or he can invoice from City B GST Registration by charging IGST

[Sadanand Bulbule]

This is already settled discussion: for details refer Issue Id: - 119975 Dated: 6-5-2025

[YAGAY andSUN]

Following views may also be helpful for you in this matter.

Mr. X is renting out an immovable property in City A to Mr. Y. He is living in City A, but his GST registration is in City B, where he runs his business. Now the question is—can he issue a GST invoice from his City B registration for the rent, or does he need to get a separate GST registration in City A?

Here’s how it works under GST:

• As per GST law, when it comes to renting of immovable property, the place of supply is always the location of the property itself.

• In this case, since the property is in City A, the place of supply is City A.

• And since Mr. X does not have a GST registration in City A, he cannot issue a valid GST invoice from his City B registration for this rental income.

• GST rules require that a person must be registered in the State where the property is located, if they are providing taxable services from there.

So, what should Mr. X do?

Mr. X needs to take a separate GST registration in City A (i.e., in that State) for the rental service. Only then he can charge CGST and SGST on the rent. He cannot charge IGST by using his City B registration, because the place of supply (City A) and location of the supplier (Mr. X, for rental purpose) are both in City A.

In short:
Yes, Mr. X must get registered in City A for renting out the property. He cannot use his City B GST registration to issue an invoice for the rent and cannot charge IGST in this case.

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[Ganeshan Kalyani]

I agree with the view of the experts.

[Shilpi Jain]

Can rent it from city B and need not take registration in city A.

AI Summary

GST Registration Required for Property Rental in Different City Under Place of Supply Rules Section 22 A property owner renting out immovable property located in City A faces GST registration requirements. Since the property is in City A, the place of supply rules mandate obtaining a local GST registration in that city. The owner cannot issue a valid GST invoice using their existing City B registration. To legally charge GST on rental income, a separate City A registration is necessary, allowing CGST and SGST to be levied.