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Atul Yagnik (12 Points)

28 June 2017

If the rent income below 20 lakhs. Should I need to register in GST??

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Bharat bhushan (Chartered Accountant) (143 Points)
Replied 28 June 2017

Comparison of tax structure on rental income under current tax regime and GST regime:Service Tax:1. Non-applicability: The service tax is not charged on renting of vacant land, with or without a structure relating to agriculture, renting of residential dwelling units used as residence, renting out of property by Reserve Bank of India and renting out of property by a Government or a local authority to a non-business entity.2. Exemtion Limit : Service tax is not mandatory if the total value of services provided by the service provided is less than Rs.10 lakhs and the service tax is exempt on renting of precincts of a religious place meant for the public, renting of hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes whose tariffs are below Rs.1,000 per day and on renting of an exempt educational institution.3. In all situations other than covered above there is 15 service tax if total rental value is above Rs 10 lakhs annually. GST:1. Non-applicability: As per Ministry of Finance, under GST all exemptions of service tax will continue, so accordingly above exemptions will continue. 2. Basic exemption limit is RS. 20 lac.3. Rate on service also will be 18 on Rental Income.So in GST regime, basically two changes came in Renting business :1. Basic exemption limit increased to Rs.20 lk.2. Rate of tax increased to 18.3. Other things same. About registration: As you told your total rental value is below Rs. 20 lakhs, in that case you don't need to register but if already registered yourself in service tax then you need to migrate your business into GST.

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