Gst on clinic space on rent

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This query is : Resolved

Dr. Anil Singhal (Querist)
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25 August 2017 Dear Sir,

My wife has taken a clinic space on rent -- approx. Rs. 25,000/- every month.

Land lord is asking for an increase of 18% GST next month onwards. I am not aware whether land-lord is registered in GST.

My wife is not registered in GST.

1. Should we pay 18% GST to land lord including Rent by cheque?

2. What kind of invoice we should ask land-lord to give us?

3. How can we get benefit of GST paid to land lord?

4. Can she claim this 18% GST (approx. Rs. 4500/-)?

5. Is it necessary for her to register herself in GST?
Right now her total collection from the clinic is not more than 50,000/- per month.

Please guide us.

Best regards,
Dr. Anil Singhal MD

Dr. Anil Singhal

Dr. Anil Singhal (Querist)
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25 August 2017 Right now her total collection from the clinic is not more than 50,000/- per month from which she has other expenses also...

Dr. Anil Singhal

Dr. Anil Singhal (Querist)
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25 August 2017 Above query is not resolved....

Dr. Anil Singhal

Dr. Anil Singhal (Querist)
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25 August 2017 Please reply to above issue...

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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25 August 2017 GST is liable to be paid on rent@18%. You could require the landlord for a tax invoice that would also bear his registration number. Health care services provided from a clinical establishment are exempt; In a situation if the clinical establishment provides exempt health care services, as per the given facts, no benefit could be had from the GST paid on rent and that would from part of cost.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 August 2017 1 Yes you need to pay 18% GST on rent.
2 Ask for tax invoice.
3 As your service is exempt you can't claim ITC on gst.
4 She can't claim as her service is exempt.
5 No need of gst registration.

Dr. Anil Singhal

Dr. Anil Singhal (Querist)
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25 August 2017 Thank you very much Seetharaman ji and Vishakha ji.

That means there is an additional expense for nearly 50,000 per annum due to GST, and we can not claim it back or can not save it in any situation.... a bad part of GST for a novice....

Best regards,
Dr. Anil Singhal

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