GST charge on DN

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This discussion clarifies whether GST needs to be charged on a debit note issued for rent paid to a landlord on behalf of a client. If the arrangement is a simple reimbursement and not a formal sub-renting agreement, GST is generally not applicable. However, if it constitutes actual rent or sub-letting, then GST should be charged.

jaya

jaya (Querist)
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07 October 2025 Hi,

i need to raise the Debit Note of rent (i paid to the landlord) to my client, which he was suppose to pay since he has taken over the operations, so do i need to charge GST on Debit note ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 October 2025 No. if it is just reimbursement; and not a contract of sub-renting between you two.

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jaya

jaya (Querist)
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08 October 2025 see its on mutual understanding no agreement as of now...its a big amount then also i need to avoid GST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 October 2025 If its rent/sub renting, then charge GST. But if the rent is to be paid by directly to landlord by your client, you need not charge GST.

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