Immovable Property Services under GST

Place of supply for Immovable Property Services under GST

There is no definition provide in CGST Act of Immovable Property. In general terms an immovable property is an immovable object, a property that cannot be moved without destroying or altering it. It is fixed to the earth, such as a piece of land or a house. Immovable property includes premises, property rights (for example, inheritable building right), houses, land and associated goods, and chattels if they are located on, or below, or have a fixed address.

GST is now applicable in place of service.

The type of GST to be charged will depend if the supply is intra-state or inter-state. This will be ascertained by determining the place of supply of the service.

Place of Supply for Services of Immovable Property

Generally Place of Supply will be the location of property

Supply of service   

Directly in relation to an immovable property. Including services provided by
  1. Architects
  2. Interior decorators, Surveyors
  3. Engineers
  4. Other experts or estate agents
  5. Service of grants of rights to use immovable property
  6. Carrying out/co-ordinate of construction work
Lodging accommodation in a hotel, inn, club, campsite etc. Includes house boat or any other vessel

Place of supply

Location at which the immovable property.
If immovable property is located outside India, then the place of supply shall be the location of the recipient

If the immovable property (or boat/vessel) is located in more than one State then all the states will be considered as place of supplies in proportion in value of services. The states will share GST in proportion to the value of services.

Input Tax Credit

Place of supply of services provided in relation to an immovable property is the location of the immovable property which means GST will be CGST and SGST.

CGST and SGST credit of one state cannot be used to set-off the liability of another state.