Commercial rent gst

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This query is : Resolved

Lakshmi (Querist)

08 August 2017 1) during a given year if a tenant has been paying GST, as the owner of the premises expected income of over 20 lakhs within a year, but at the end of financial year of the owner did not make 20 Lakhs will the tenant get the GST back? Or will the owner get the GST amount paid so far back?2) for a commercial property under rent, should tenant pay GST on top of the rent or , if the rental agreement says all taxes are included should tenant pay only the rent which includes the GST.., and under such cases is it up to the owner of premises to calculate the GST at the end of the financial year and pay the GST for entire financial year if they had a total commercial rental income of 20 Lakhs?

Anand

Anand (Expert)

08 August 2017 1. GST can only be collected by a person having a valid GST Number. Once collected from the tenant, the landlord will have to deposit the tax to the credit of the Government and then file returns. Hence, assuming that the landlord has been following this process, since once the person is registered he necessarily should collect and deposit tax, i do not think a refund of tax is possible if at the end of the year he realises that turnover is not crossing 20L threshold
2. It is important to see what was the intention of the parties at the time the agreement was entered into. If taxes are inclusive, and this was understood as such at the time of signing the agreement then the landlord will have to backwork the calculation and deposit tax. However, if this is not the case i do not see any landlord acepting it it because it will be paid out of his or her pocket.

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