GST applicability on Rent Received from HPCL

This query is : Resolved

Shagun (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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

Shagun (Querist)
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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

CA R SEETHARAMAN

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

Prakash Kochar

Prakash Kochar (Expert)
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07 May 2020 What about 22000-19000 difference.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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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