The Conundrum of GST Place of Supply Rules for Tokenized Real Estate Services
POS rules under the IGST Act determine whether services fall under IGST or CGST+SGST in tokenized real estate structures. The key takeaway is that service classification and property location decide tax jurisdiction, not commercial intent.
➤ The article analyzes the complexities of Goods and Services Tax (GST) Place of Supply (POS) rules for tokenized real estate services in India, particularly for SM REITs. ➤ It details how different services within the tokenized real estate ecosystem (fund management, property management, platform fees, advisory, cross-border services) are subject to varying POS rules under the IGST Act, impacting tax jurisdiction and export eligibility. ➤ Key takeaways include the importance of accurately mapping service types, recipient status, and property location, with recent updates from the Finance Act 2026 impacting cross-border transactions and the need for specific GST registrations in multiple states.
