GST applicability on Rent Received from HPCL


This query is : Resolved 

Quick Summary
This discussion clarifies GST implications for petrol bunk owners renting land. It addresses whether GST is payable on rent received from HPCL, especially when HPCL reimburses a portion of the rent paid to the landowner. The consensus suggests that GST is not applicable on pure agent reimbursements from HPCL, as these are not considered income but rather a pass-through of expenses. The net rent paid by the bunk owner after reimbursement also needs consideration for GST.

(Querist)
06 May 2020 Hi,

One of our client they run petrol bunk. The land is taken on rent For Rs.22,000/- per month, and in return HPCL will reimburse Rs.19000/- twds rent to Bunk owner.

Do we have to pay GST on Rent received? and
Do we have to pay GST on Rent paid to land Owner??

Regards,
Sagun

06 May 2020 GST payable to land owner if he raised tax invoice with GST.
In case of reimbursement pass on GST if paid.

Shagun (Querist)
06 May 2020 HPCL give us lumpsum amount, and our statutory auditor told us that we have to pay GST on amount received from HPCL as reimbursement. but it is not income for Bunk right

06 May 2020 Yes you are right it's not an income only reimbursement of expenses under pure agent service GST not applicable.

07 May 2020 What about 22000-19000 difference.

07 May 2020 Reimbursement is less than the payment.made. Less amount is reimbursd as some part of the land used for sale of lub oils etc.
Petrol and diesel is sold on commission basis. Petrol and diesel pump and tanks etc put up by oil companies at their cost.


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