Our client is registered in Gujarat and based at Gujarat. He has commercial property in Maharashtra Mumbai. He has given them on Rent. How GST Will be charged ?? Do we need to take registration in Maharashtra ??? How mumbai tenant will get ITC ???

Reply— If your client is not having fixed establishment in state of Maharashtra, location of usual place of business shall be the location of the supplier of service, accordingly taxpayer can issue IGST invoice for Renting of immovable property from existing registration in Gujarat. Tenant is eligible to claim ITC of IGST paid.

In our view, there is no requirement to take registration in State of Maharashtra.

However, as per practical FAQs under GST issued by Institute of Chartered Accountant of India, for determining whether the registered person has to take registration in other states where the immovable properties are located, it is pertinent to know the place from where he makes a taxable supply of goods or services or both and such place shall be construed as place of business  as per section 2(85) of CGST Act. Thus in instant case the place where the immovable property is situated shall be place from where the business is ordinarily carried on, hence it is suggested to take registration in state where immovable property is located as taxable supply of service is effected from such state. It will be an intra-state supply and your client is required to obtain registration in Maharashtra.

It seems to be a debatable issue which requires clarification from department or taxpayer can apply for advance ruling in such matter.