EXAMPLE-82

M/s ABC in Delhi rented his immovable property (Banquet hall) in USA to Mr. B of Delhi for the occasion of his son’s marriage in USA. M/s ABC did not charge GST on consideration of renting of immovable property.  

Answer

M/s ABC is wrong on not charging GST. Place of supply will be decided according to section 12 of IGST Act. Clause (c) to sub-section (3) of section 12 of IGST Act specifies that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.

In view of the above provision, location of Mr. B is Delhi, therefore, place of supple is Delhi. Thus, M/s ABC also being in Delhi has made intra-state supply hence liable to charge CGST and SGST from Mr. B on the consideration amount.