Registration requirement and Eligibility of ITC, Goods and Services Tax - GST

[CASUNIL BHANSALI]

A registered person owns immovable property located across multiple state, is it necessary for them to obtain registration in each State, regardless of whether their business pertains to rental activities or any other activity?

Additionally, if the registered person is not liable for registration in the location where the property is situated and charge IGST. Can the recipient of such services still claim Input Tax Credit (ITC), even if the place of supply (POS) differs from the State of Recipient .

Posts / Replies

[Shilpi Jain]

Registration in every State is not mandatory as supply/service is being provided from the place of his residence or normal place of business itself. He is not required to be every State where the properties are located to provide the leasing services.

[Shilpi Jain]

IGST will be charged with PoS being the State where the property is located.

Law does not spell clearly ineligibility of credit in such cases.

Though logically department would deny credit to a recipeient if he is in a State different from the State of PoS

[Shilpi Jain]

Such recipient could be asked to take ISD registration and distribute credit to his other registrations.

[KASTURI SETHI]

Sometimes it happens that service recipient is not able to utilize IGST. That aspect is also to taken care of. So either ISD or separate registration in each State would enable the service recipient to use ITC.

[Padmanathan Kollengode]

Personally, I would suggest to take registration in the State in which each property is located and issue CGST and SGST invoice to corresponding tenants.