RCM applicability on renting of residential property

[Sooraj B]

A company is registered in the State of Kerala . It takes on rent a flat in Mumbai, which is used by its directors who visit Mumbai frequently for meetings . Is the Company liable to pay GST under RCM in terms of Serial number 5AA of Notification 13/2017-CTR?. In this case, the location of the supplier and the place of supply are in Maharashtra ; accordingly the tax applicable will be CGST and SGST of Maharashtra . There is no way, the Company can pay CGST and SGST of Maharashtra, as it is not registered in Maharashtra. So does the levy fail here ? Or should the Company get itself registered in Maharashtra u/s 24 of the CGST Act, as RCM is applicable?. Kindly share your views.

AI Summary

Renting of residential property: GST reverse charge on rent triggers debate over whether out of State registration is required.
The issue concerns RCM on renting of a residential dwelling to a registered person where place of supply is the State of the immovable property. Contributors cite RCM rules, place of supply for immovable related services, definitions of supplier/recipient location, and compulsory registration for RCM payers. Views diverge: one opinion says the levy can be discharged from the existing State registration; others contend CGST and SGST of the property State are payable and separate registration in that State is mandatory for persons liable under RCM.