TaxTMI 
TaxTMI 
rcm on rent
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....cm on rent<br> Query (Issue) Started By: - satbir singhwahi Dated:- 27-1-2025 Last Reply Date:- 3-4-2025 Goods and Services Tax - GST<br>Got 17 Replies<br>GST<br>gst unregistered landlord in Goa sends rent bill for building in goa to punjab gst registered company , now punjab registered company needs to pay RCM , it will be igst or cgst and sgst. Reply By Sadanand Bulbule: The Reply: Dear In terms of Section 12[3] of the IGST Act, it is to be CGST plus SGST under RCM in the hands of the registered company who has utilised such services at Goa. It is like hotel accommodation bill at Goa. Is that Punjab company not registered in Goa? Reply By satbir singhwahi: The Reply: Sir Punjab company only registered in punjab and not registe....
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....red in Goa. Reply By Sadanand Bulbule: The Reply: Sir Could you explain the purpose of hiring the building at Goa, whether for commercial or residential use, to under the depth of your query? Reply By satbir singhwahi: The Reply: Sir Company has hired commercial building in Goa to get software personnel sit and do work for company in punjab. All Salary and other payments made from punjab. Reply By Sadanand Bulbule: The Reply: Sir In that event, are you not liable for registration in Goa from where you are receiving software services? The place from where you make salary is a secondary issue. In my opinion, in terms of Section 24 [iii], you are liable for registration at Goa. Reply By KASTURI SETHI: The Reply: I fully suppor....
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....t the views of Sh.Sadanand Bulbule'Sir. Under RCM the service recipient is deemed service provider. Reply By VENU K: The Reply: Can it come under compulsory registration under 24(iii) assuming the rent is billed to and paid by the entity in Goa?. RCM on rent is applicable only for a registered person. So as long as the unit in Goa remains an unregistered person he wont be liable to RCM and hence I don't think Sec 24(iii) will make him liable for compulsory registration. The logic is, since it is a company, it will have to have license from local authority etc to do business in Goa. But even if it is not liable for RCM, I think it will come under compulsory registration since, this will be deemed as a fixed establishment re....
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....quiring registration as it is a place which is charectarised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services , or to receive and use services for its own needs under Sec 2(5). The entity will be deemed as a distinct person . In GST transactions between distinct person are deemed as supply. So in my opinion this will need compulsory registration under Sec 24(i) as a person making interstate taxable supply from day one of its establishment. RCM rent will also have to be paid by this entity. My understanding. Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, Your Company is registered under GST in Punjab but hired a commercial building in Goa for which....
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.... you have to pay tax under RCM towards CGST & SGST being the place of supply is in Goa. The Company is not registered in Goa and hence, the services received in Goa would be treated as 'end user' and not liable to claim ITC on such payment. If the Company has any transaction between Punjab and Goa, is required to get registered under GST in Goa, compulsorily u/s 24 (i) &(iii). Reply By Padmanathan KV: The Reply: I hold an unpopular view that the Punjab Registered Company will have to compulsorily register in Goa and pay CGST and UTGST. Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sri Padmanathan KV ji Sir Please elaborate on the tax liability payable by the Registered person in Punjab for the rent bil....
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....l received against the corporate building situated in Goa from an unregistered person. Reply By VENU K: The Reply: The entity will be deemed as a distinct person the day they establish a branch because he is having a fixed establishment at Goa.All the services inter se between Goa and HO will be deemed as taxable supplies.Naturally he has to compulsorily register in Goa.He must also bill for deemed services and supplies between HO and Goa.He must also pay RCM on rent at Goa and can take ITC as per provisions. In GST transactions between distinct persons in different states are deemed as supply. So in my opinion this will need compulsory registration under Sec 24(i) as a person making interstate taxable supply from day one of its establis....
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....hment. RCM rent will also have to be paid by this entity. Reply By satbir singhwahi: The Reply: Thanks all for reply. Reply By Yash Shah: The Reply: According to Section 12(3) of IGST Act 2017, Place of supply (POS) in case of renting of immovable property shall be the location at which the immovable property is located. Further, as per Section 8(2) of the IGST Act, supply of services where the location of the supplier and POS of services are in the same state or union territory shall be treated as intra-state supply As per Section 24(iii) of the CGST Act 2017, a person who is required to pay tax under RCM needs to take compulsory registration. In the given case, since the building is located in Goa, POS of r....
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....enting of building shall be Goa and since location of supplier is also in Goa therefore this shall be treated as intra-state supply. Therefore, the company registered in Punjab is required to take registration in Goa (u/s 24(iii)) and needs to pay tax under RCM under CGST & SGST Reply By Sadanand Bulbule: The Reply: Dear querist Sir My gratitude to you for accepting all replies. Reply By Shilpi Jain: The Reply: Registration requirement triggers due to supply being made from Goa. Due to the requirement to register in Goa, RCM liabiltiy also arises as an intra-State supply and NOT IGST. Reply By Ganesh S: The Reply: Dear All, I have scenario, wherein a guest house is taken in a different state (say Goa) where the company is not r....
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....egistered. The renting of Guest house is for long duration and as and when Company personnel visits this state where it's customer is located, instead of staying in a hotel, they stay in guest house. The Company is registered in Karnataka. Since the guest house is used for residential purpose and landlord is unregistered at Goa, RCM needs to be paid by the Company. In this scenario, will it be IGST or CGST/SGST? Should the company register at Goa? Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, Your query is the same as above. You are required to get registration in Goa as per Sec. 24 (iii) of the CGST Act as you are liable to pay CGST & SGST under RCM for the building hired on a long-term basis. You cannot pay....
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.... IGST or can't avail of ITC on rent paid in Goa in the State of Karnataka since the place of supply of service is Goa.<br> Discussion Forum - Knowledge Sharing ....