Fail to issue gst invoice from last 46 months

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This query is : Resolved

VARUN DHIMAN (Querist)

01 April 2025 Sir
If landlord fails to issue gst invoice of rent( rent is around 7 lac per annum & landlord have gst number )
What will be consequences on part of landlord
Regards
Varun dhiman

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

12 August 2025 Hi Varun,

If a landlord who is registered under GST fails to issue a GST invoice for rent received (which is taxable), the consequences can be significant:

Interest and Penalty:

The landlord is liable to pay interest on the amount of GST that should have been paid but was not collected due to non-issuance of invoice.

Penalties may also be imposed for non-compliance, including failure to issue invoice and non-payment of GST.

Demand and Recovery:

The tax authorities may issue a demand notice for the unpaid GST along with interest and penalties.

Recovery proceedings can be initiated if the tax is not paid.

Input Tax Credit (ITC) Denial for Tenant:

If the landlord does not issue a proper GST invoice, the tenant cannot claim ITC on the rent paid. This can lead to disputes and compliance issues for the tenant.

Audit and Scrutiny Risk:

Non-issuance of invoices is a red flag during GST audits or assessments, increasing the chances of scrutiny and investigation by tax authorities.

Important:
The landlord should ideally issue the missing invoices immediately, pay the applicable GST along with interest, and file the necessary returns and revisions to mitigate further penalties.

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