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2. How would GST apply to me?

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There are two components of GST, i.e.,

  1. CGST + SGST: For same state transactions
  2. IGST: For Inter state Transactions

Business Centres and Coworking Spaces operate in the commercial equivalent model as that of an accommodation in a hotel. Hence, It becomes important to know whether the Rent received in a case of same state transaction or, inter-state transaction as this will directly impact whether CGST + SGST will be levied, or IGST will be levied.

As per the GST Law, the ‘Place Of Supply‘ becomes an important factor to govern the type of tax to be levied in case of immovable property, which is always the location of the property. This means that the GST levied will almost always be CGST and SGST. 

 

What Happens if the Coworker Member is not registered in the Same state as that of the immovable property?

Please note that irrespective of the location of the registration of the coworker member entity, if the coworking space company is registered in the same state as the location of the property then it would be a case of same state transaction, and therefore CGST+SGST would be levied.

Please note that the CGST and SGST credit of one state may not be used to set-off the liability of another state.

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