Fail to issue gst invoice from last 46 months

This query is : Resolved

VARUN DHIMAN (Querist)
Follow

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 online

Aashok Kumar Sharma online

(Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now