GST implication in case of Proprietor

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This discussion clarifies GST implications for a proprietor letting out commercial and residential property. For commercial property let to GST-registered entities, GST is applicable under the Forward Charge Mechanism (FCM), with invoices needing to be raised based on the owner's share if co-owned. If a portion of a residential property is let out for commercial purposes to a GST-registered proprietor, FCM also applies, with GST liability determined by the rent received by each owner. However, if the residential property is used solely for residential purposes, no GST is liable.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

25 February 2025 1. A proprietor registered under GST, has let out 2 portions of his commercial property - One to a Pvt Ltd company and the other to another proprietor ( both registered under GST). Please confirm the GST implications in both the cases.

2. He has also let out a portion of his residential property in which he is a co-owner with his wife. The tenant is a proprietor registered under GST. Please confirm the GST implications in this case also.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 February 2025 1. GST applicable under FCM in both instances.
2. If the HP is used for residential purpose, no GST liable.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

25 February 2025 Thanks for your prompt reply.
In case of HP, the tenant is using it for commercial purpose and he is registered under GST.
Should the owner raise invoice under GST?
If yes, then it should be raised on the basis of owner's share as the property is owned by him and his wife? Please confirm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 February 2025 If the use of HP is for commercial purpose, and you being registered dealer, FMC will be applicable as per the rent amount received by each owner.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

25 February 2025 Thanks for your prompt reply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 February 2025 You are welcome.

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