This discussion explores whether a lessor is liable for GST when their jointly owned property is rented out by a lessee to multiple paying guests. The lessee collects rent, retains a portion, and transfers the remainder to the lessor. A key point raised is that GST may not apply if the stay is 90 days or more and the rent per person is below Rs. 20,000.
28 December 2025
Can any of the esteemed members in this panel throw light on the below :
Lessor (Jointly owned by 2 people) has rented out property to lessee. Lessee has given this property for rent to various people as paying guest accommodation. Lessee receives Rs. 10,000/- as rental income from each person. Whatever rent the lessee in receiving, he is keeping some amount and the rest (around 5 Lakhs) is being transferred to the lessor (to both the individuals equally).
Is GST applicable in the hands of lessor and under which section ?