Case Study on Place of Supply for Cross State Tenancy
What is the GST on Rent of Commercial Property at Delhi ? in this case
- Landlord of Faridabad / Gurgaon / Sonepat , registered in GST in Haryana
- Tenant also of Faridabad, registered in GST in Faridabad ( Haryana )
- Tenant is not registered in Delhi in GST
- so, as per law, the place of supply is Delhi only.
- Landlord must mention the place of supply as Delhi in the invoice. And the Tax will be IGST only
- And, Tenant cannot take the ITC input of this tax invoice, as per law.
- This is valid and correct interpretation of the law
Any method, to save the GST for tenant ?
He can get ITC only if he takes GST registration in Delhi
There is no other legal method
How to Make the Invoice and how to File the GST Return (by landlord )
in the invoice, the landlord can put the tenant at Delhi address and without the GST number, since Tenant has no GSTIN in Delhi anyway.
IGST is levied = OK
This becomes like a B2C invoice = OK
Tenant does not get the GST2A entry for this and does not take inputs of this = Ok
Till the Tenant gets a GST registration in Delhi, this is a good method,
Any compulsive need of Landlord taking GSTIN in Delhi ?
No, not required in this situation.