TaxTMI 
TaxTMI 
TaxTMI 
tenant registered in another state taking property on rent from unregistered person in another state
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....enant registered in another state taking property on rent from unregistered person in another state<br> Query (Issue) Started By: - Sushil Kumar Tibrewal Dated:- 25-7-2025 Last Reply Date:- 26-7-2025 Goods and Services Tax - GST<br>Got 12 Replies<br>GST<br>My company is registered in Gujrat and taking property situated in Delhi on rent from an unregistered person for registered office only. how to....
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.... pay gst on RCM basis? whether my company should take registration in delhi also Reply By Sadanand Bulbule: The Reply: Yes. In terms of Section 24(iii) of the CGST Act, a person liable to pay tax under RCM must take registration in the State where such services are received. Reply By Sushil Kumar Tibrewal: The Reply: sadanand bulbule ji, In 24(iii) only registration word is used. and my....
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.... company is already registered. Reply By Sadanand Bulbule: The Reply: Plz re-visit your query and refer the following: Compulsory registration in certain cases. 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-- (i) XXXX (ii) XXXX (iii) persons who are required to ....
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....pay tax under reverse charge In terms of the above statutory position, you need to take registration at Delhi also. If you have any further doubts, plz feel free to post them. Reply By VENU K: The Reply: In my humble opinion Section 24(iii) does not say that you need to be registered in every State where reverse charge tax liability arises - only that you must be registered somewhere to dischar....
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....ge RCM liability. * You (recipient) are registered in Gujarat, * Property is in Delhi (different state), * This is an inter-state supply under Section 7 of IGST Act, * You are liable to pay IGST under RCM. Reply By Sadanand Bulbule: The Reply: Refer Issue ID : 120235. Much water has flown on the same subject. Reply By Sushil Kumar Tibrewal: The Reply: unregistered la....
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....ndlord is also residing in Delhi Reply By Sushil Kumar Tibrewal: The Reply: unregistered landlord is also residing in Delhi Reply By Sushil Kumar Tibrewal: The Reply: VENU K JI IN THE ABOVE CASE LAND LORD IS ALSO RESIDING IN DELHI Reply By Sadanand Bulbule: The Reply: The GST regime has been rolled out with effect from July 01, 2017 is a destination or consumption-based ta....
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....x regime. In other words, GST is a tax on goods and/or services that gets accrued to the State/UT where they are actually consumed. The basic principle of this taxation regime is the States/UTs get GST on all goods actually consumed in their State/UT irrespective of where they are manufactured. The basic principle of this taxation regime is the States/UTs get GST on all goods/services actually con....
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....sumed in their State/UT. In this background, the provision of Section 24[iii] of the CGST Act comes into play as the rental services are consumed in the geographical territory of Delhi. So tax on such transaction under RCM is due to Delhi. Reply By KALLESHAMURTHY MURTHY: The Reply: I agree with Sadanand Bulbule, Sir. The place of supply is Delhi, and IGST is not applicable. A regist....
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....ered person taking property on rent from an unregistered person is liable to tax under RCM. Therefore, it is necessary to obtain registration in Delhi, where the services are supplied. Reply By Shilpi Jain: The Reply: The RCM liability on renting of the commercial property does not arise if person is un-registered. Unlike GTA, liability under RCM exists, whether or not the recipient is register....
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....ed. In such cases, s 24 will apply and one may need to take registration mandatorily to pay off the RCM liability. In this case one may take a stand that the person is not registered in Delhi and so not liable to RCM. Though could be a disputed stand. Also in this case liability being CGST & SGST of Delhi, it is not possible to make such tax payment, even if it is considered that there is GST li....
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....ability in the present case. Reply By Sadanand Bulbule: The Reply: My above posts are in terms of Section 8(2) read with Section 12(3) (a) & (b) of the IGST Act, 2017. Any little mis interpration is likely to shake the essence of the GST Act-the place of supply of service. Choice is left the querist to be prudent or otherwise. Risk cannot be the reward.<br> Discussion Forum - Knowledge S....
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....haring ....