QUESTION

Mr. X has register premises in the sate of Uttar Pradesh. He had his head office at Gurgaon Haryana. He had not taken GST Registration for his Gurgaon office. His Gurgaon office is on rent. He had an agreement with landlord for the services as mentioned below. 1. Open Area Maintenance Charges :- Covered Electrification. water supply, tube well maintained of compound wall. 2 Common Area Maintenance :- Covers Maintenance of Lifts, Firefighting Equipments and their services in side the complex 3 Maintenance Charges of Basement :- Covers services as electric sub station pumps Fire fighting rooms DG Set etc 4. Cost of security services provided in the said complex. 5. Service Contract Expenditure charges for operation and Maintenance of all electro mechanical equipment including central air conditioning plants. 6. Cost of electricity for all maintenance services including the parking area. 7 cost of administrative staff and maintenance staff of the said complex. 8. Cost of consumables for all services and facilities including cost of diesel and lubricants for DG set. Questions are: 1) What is the place of Supply in the above mentioned Services. 2. Can he availed the ITC on above mentioned Services on be half of his head office at his registered office 3 Agreement has been made by his registered factory of uttarpradesh and landlord of the premises at Gurgaon.

ANSWER

FACTS OF THE CASE: Eligibility of ITC by Registered Office (Uttar Pradesh) for the services received at Rented Office (Gurgaon unregistered).

LAW APPLICABLE: SECTION 12 of IGST Act

(3) The place of supply of services,''

(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
---------------------------------------------------
shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:

INTERPRETATION: Immovable Property i.e. Rented Office is in Gurgaon (Haryana) and supplier of service is also in Haryana, Recipient of Service is registered in Uttar Pradesh.

As per Section 12 of IGST Act POS in respect of immovable property is the location at which immovable property is located i.e. Haryana.

For the services which are directly in relation to immovable property, POS is Haryana and Location of supplier is Haryana, thus CGST and SGST is to be charged, therefore ITC cannot be claimed at Office registered in Uttar Pradesh.

However for services related to staff, separate invoice can be issued charging IGST, so that ITC can be claimed by Office registered in Uttar Pradesh on behalf of Head Office

CONCLUSION: Services 1 to 6 and 8 are directly in relation to immovable property, thus no ITC can be claimed for CGST and SGST.
For Service 7 related to cost of administrative staff and maintenance staff of the said complex, separate invoice can be issued charging IGST, so that ITC can be claimed at UP office. (Reply dt. 21/12/2021)