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rent of immovable property

02 August 2017

an individual rents his immovable property to a Pvt.co. for business use. however the total rent received by him does not exceed Rs.20l. whether gst applicable? under rcm? his other income is from agriculture and salary in partnership firm

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24 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 02 August 2017

Yes...... GST applicable under RCM, if tenant is RD

dipti adake (64 Points)
Replied 02 August 2017

can u plz quote d relevant section?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 02 August 2017

RCM under GST Section 9(4).........

Refer: gst-reverse-charge

dipti adake (64 Points)
Replied 02 August 2017

sorry to differ, but nor the individuals rent received is exceeding rs.20l, nor the renting of immovable property covered under rcm list? so on what basis gst is applicable?

Manas Das (1431 Points)
Replied 02 August 2017

no gst if rental income below 20 lakhs

Manas Das (1431 Points)
Replied 02 August 2017

but the company who paying u rent would pay gst under reverse charge not u

Chhatra Singh Dugar (1464 Points)
Replied 02 August 2017

In your case if rent and non taxable supplies exceeds 20 L you are required to register yourself. For you information 20 L limits includes both taxable and all exempt supplies. As agricultural sale is out of purview of GST but for calculation of threshold limit of 20 L all exempt supplies are included.

Rent is not under RCM.

So individual has got to get himself registered if he crosses 20 L limit. Then raise Rent Bill and charge GST on that.

In second scenario individual is URD but tennant is registered ., tenant will have to pay GST on rent paid under RCM. After deducting GST from rent, he will issue cheque for balance rent every month.

In third scenario if both are URD there is no need for charging GST.

Hope you clear now.

In case

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dipti adake (64 Points)
Replied 02 August 2017

why will d company pay since it is not mentioned in d rcm list of items....

Manas Das (1431 Points)
Replied 02 August 2017

if d company registered. for any inward purchase from urd have to pay gst under rcm

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Chhatra Singh Dugar (1464 Points)
Replied 02 August 2017

Mr Mohan Das is quite right

Chhatra Singh Dugar (1464 Points)
Replied 02 August 2017

Sorry name is Mr Manas Das

Manas Das (1431 Points)
Replied 02 August 2017

thank you sir

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 02 August 2017

I don't think Ms. Dipti would have been satisfied........... but

let me clarify Mr. Chhatra Singh Dugar.......... in his example of second option......... that RD tenant has to pay full amount of rent to landowner and not after deduction of GST (under RCM), because .............. a. the GST is over and above the service amount b. ITC is available to tenant over the GST deducted under RCM (or even forward charge), so no loss to tenant.

Chhatra Singh Dugar (1464 Points)
Replied 03 August 2017

I do agree with Mr Dhirajlal Rambhia that in case of RD tenant there is no loss to him if GST is PD by him over and above rent. Dipti has not mentioned how much rent of total rent is paid by this particular tenant. If it is substantially high, then tenant may face difficulty in adjusting GST pd under RCM against his output tax liability.

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