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 and SUN]

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

Place of supply: rental property location determines GST registration and requires charging CGST and SGST, not IGST.
Renting of immovable property fixes the place of supply at the property's location, requiring the supplier to obtain GST registration in the State where the property is situated; the supplier cannot invoice from a registration in another State or charge IGST on that rental, and must instead apply CGST and SGST from the registration corresponding to the property location.