Dear Sir, one of my client has registered in Maharashtra state , he has given his commercial place on rent to another company which is situated in Karnataka state. my question is 1. whether he has to raise tax invoice as IGST or CGST/SGST? 2. what will be the situation if the company has GST no in Maharashtra to whom place is given on rent basis? can we raise invoice against GST no of Maharashtra?.

Reply—Place of supply and location of supplier of service are the key element to determine, whether a transaction will attract IGST or CGST and SGST.

In case of renting of immovable property, as per section 12(3) of IGST Act, the place of supply of service in relation to an immovable property shall be the location at which the immovable property is located. Therefore, in this case, the place of supply is undisputedly Gujarat because the property is located there.

As per section 2(15) of IGST Act, 2017, the term location of the supplier of services means

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;

(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and

(d) in absence of such places, the location of the usual place of residence of the supplier.

Loaction of supplier of service will be Maharashtra.

Since place of supply and location of supplier is in different state, IGST should be charged by your client from Maharashtra registration.