Question10:

XYZ is having an office at Rajkot, Gujarat and they had taken GST Registration for the office at Rajkot. They own a commercial property at Navi Mumbai (Maharashtra) which is given on Rent to PQR for commercial use and charging IGST in the invoice to PQR under the GST registration of Rajkot. Is it correct and can PQR avail ITC of the IGST charged by XYZ or XYZ need to take a separate GST Registration at Navi Mumbai, Maharashtra for that premises?

Answer:

XYZ is having office at Rajkot so Location of supplier is Gujarat  Property is located in Maharashtra so as per Section12(3) of IGST Act the place of supply Is Maharashtra so the transaction is subject to IGST But you should take care that the rent deed is signed in Gujarat office and not at Maharashtra property because the audit party may on the basis of rent deed will try to establish that the location of supplier is in Maharashtra. (Reply dt.09/12/2017)