Whether giving properties on rent for commercial purpose in different states while you reside in another state make you inter-state supplier ? While the definition of inter-state supply as per section 7(3) states inter-state supply is one where the location of supplier and the place of supply are in two different states or state & union territories. So question is whether a person will be regarded as inter-state supplier if he resides in New Delhi and has rented the ownership properties situated in Mumbai and Kolkata Â ??
If that view is correct , he will have to pay IGST and will also not get any basic exemption benefit ( upto 20 Lakhs). However , in my considered opinion , he is intra-state supplier for Maharashtra and West Bengal and not the inter-state supplier. Here are my arguments