Determination of type of supply(CGST,SGST/IGST) in relation to Immovable Properties

[Ramanathan Seshan]

Dear Experts,

Require your guidance with respect to determination of type of supply for the following transactions:

1. Supplier is unregistered in kerala

2. Property located in Tamil nadu

3. Recipient located in Tamil nadu (Registered)

Regards,

S Ram

AI Summary

Unregistered supplier's rental services for immovable property taxed based on property location under Section 12(3) IGST Act An unregistered supplier in Kerala provides rental services for immovable property located in Tamil Nadu to a registered recipient in Tamil Nadu. Under Section 12(3) of the IGST Act 2017, the place of supply for services related to immovable property is determined by the property's location, regardless of supplier or recipient locations. Since the property is in Tamil Nadu and the recipient is also registered in Tamil Nadu, this constitutes an intra-state supply attracting CGST and SGST rather than IGST. The registered recipient in Tamil Nadu must pay the applicable taxes under reverse charge mechanism as per relevant notifications, while the unregistered supplier is not required to obtain GST registration. The property location serves as the decisive factor overriding the supplier's location for determining GST supply type.