GST is applicable on Rental income if GST no taken against Medical Store income under proprietorship

Save Share

This query is : Resolved

Quick Summary

If you operate a medical store under a proprietorship and receive rental income from a property, GST is generally applicable on that rental income. You should use your existing GST number for the medical store and add the appropriate SAC code (9972) via a non-core amendment. Charge 18% GST on commercial rent. However, renting residential units for residential purposes is exempt. If a residential unit is rented to a GST-registered tenant, they will pay GST under the Reverse Charge Mechanism (RCM).

tarun

tarun (Querist)

21 August 2023 We are a Registered dealer under GST and run a Medical Store. We were taken a GST number under Proprietorship for Medical Store Business. Now we have a property that will give on Rent, So, in that case, we are liable or not to issue Tax Invoice for Rental Income with the existing number which was allotted for Medical Store Business?

RAJA P M

RAJA P M (Expert)

21 August 2023 Yes, GST applicable for the rental income. Should be Issue Tax Invoice... (Note : GST applicable for Commercial Rent)

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 Use the same GSTIN (registration is per PAN per State) and add SAC 9972 by non-core amendment; charge 18% on commercial rent, but letting a residential unit for residence is exempt, and if a residential unit is let to a GST-registered tenant, the tenant pays under RCM, not you.

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