GST Liability on Rent

This query is : Resolved

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This discussion clarifies GST implications for rental income. It covers scenarios where neither landlord nor tenant are registered, and when a registered tenant might be liable under Reverse Charge Mechanism (RCM). It also addresses whether the landlord needs to register if total rental income exceeds the GST threshold, and the subsequent GST liability under forward charge.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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04 September 2024 Assessee has 2 properties
1) He has given one residential property on rent for Rs.18,00,000/- p a and both landlord and tenant are not registered under GST
2) He has given second residential property on rent for Rs.12.00.000/- p a to a Hospital. However the premises will be used for residence of Hospital Staff and not for any commercial purpose. Rent agreement will specifically mention this use.

My questions are
1) The first rent is not subject to GST since both landlord and tenant are not registered. Am i correct ?
2) In second the tenant is registered under GST and whether GST will be payable under RCM by the tenant?
3) The total rent from above two properties would be Rs,30,00,000/-. Whether tenant is supposed to get registered under GST since it exceeds Rs.20,00,000/- and if yes what will be gst liability in both cases ?

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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04 September 2024 Assessee has 2 properties
1) He has given one commercial property on rent for Rs.18,00,000/- p a and since taxable value is below Rs.20 Lakhs GST is not charged and paid
2) Now He proposes to give second residential property on rent for Rs.12.00.000/- p a to a Hospital. However the premises will be used for residence of Hospital Staff and not for any commercial purpose. Rent agreement will specifically mention this use.

My question is
1) Since both amounts equal to Rs.32,00,000/- whether the above two transactions would be applicable under GST ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 September 2024 The owner has to register under GST as aggregate supplies are more than exempted limit; and levy GST under forward charge for both rental supplies.

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