GST on Arrears of Rent

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This discussion addresses a landlord who received rent arrears from FY 2018-19 after the financial year ended. The core question is whether to register for GST and pay tax retrospectively on the arrears, or prospectively on future income once the turnover threshold is met. The advice given is to register and pay GST prospectively on all amounts collected after registration.

shridhar S

shridhar S (Querist)
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04 July 2020 Dear Sir/Madam,
Scenario: In FY 2018-19 my rental income from Commercial building was Rs. 19,00,000 and i'm not registered under Gst, in June 2020 i had received arrears of rent for the period FY 2018-19 Rs. 2,00,000. My question is whether should i get registered and pay GST prospectively or should i get registered under GST and pay Tax retrospectively when turnover crosses Rs. 20,00,000 (i.e Rs. 21,00,000 in this case including arrears of rent which is i came to know in June 2020), and on which amount should i need to pay gst whether on whole amount i.e Rs. 21,00,000 or only on Rs. 1,00,000

Please suggest
With Best regards