Gst on rental of commercial property

[Dev Aggarwal]

Assessee is registered in Gujarat and lives in Gujarat, he has a business registered (proprietary business) in Rajasthan under GST act and a property is given in Gujarat on rent, can the Rajasthan GST number issue invoice for rented property in Gujarat Or not or do he has to take Separate GST number in Gujarat as his PAN is based in Gujarat 

[Sadanand Bulbule]

Plz refer Section 12[3] of the IGST Act to decide the actual place of supply of rental services:

(3) The place of supply of services,––

(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or

(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or

(c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or

(d) any services ancillary to the services referred to in clauses (a), (b) and (c),

shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:

In your case immovable property being loacted in Gujarat, you need to take separate registration in the State of Gujarat to collect tax and remit it therein.

[Shilpi Jain]

In case of renting of property, no registration is mandatory in State where property is located. 

[Raam Srinivasan Swaminathan Kalpathi]

Kindly issue IGST invoice to the tenant located in Gujarat.  Dept has issued FAQ to clarify this.  No need for registration in State of Gujarat.

AI Summary

Place of supply for rental services tied to immovable property determines which State's GST applies and registration need follows accordingly. Place of supply for rental services tied to immovable property is the location where the property is situated; because the rented commercial property is in Gujarat, the supply is located in Gujarat, which determines the State taxing jurisdiction. Respondents diverge on compliance: one advises separate GST registration in Gujarat to collect and remit tax there, while others assert registration is unnecessary and an IGST invoice may be issued.