GST ON commercial Properties

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies GST implications for landlords renting out commercial properties to registered tenants. It addresses whether rental income should be declared under an existing business GSTIN or if a separate registration is required, especially when the property is owned individually. The advice indicates that while a separate registration for rental income as a distinct business vertical is permissible and often recommended, utilising excess Input Tax Credit (ITC) from another business under the same GSTIN for rental GST is not allowed.

Prince Jain

Prince Jain (Querist)

03 October 2024 A) GST Registered Landlord
B) given property on rent (Commercial use) to
C) GST Registered Tenant

1. Whether rental income and gst on rental income to be shown under my Steel business gstin ? Property was not purchased under my firm name it was purchased as an Individual.

2. How to maintain PROPRIETORSHIP FIRM books as rental income received in proprietor personal savings account?

3. Whether new GST registration is required for my Rental Income ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 October 2024 1. Depends upon your choice. The GST law allows a single legal entity to obtain separate GST registrations for distinct business verticals if it chooses; however, it is also permissible to operate multiple verticals under a single GSTIN if they do not opt for separate registrations.
2. Steel business may not include rental income., Let it be declared separately,
3. Yes, as different business vertical.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 October 2024 Good luck ....

Prince Jain

Prince Jain (Querist)

13 October 2024 Hi sir...

In case of two business Verticals under the same GSTIN i.e is one is rental of immovable property and another is steel business

Can i use the excess ITC (after setting off) of steel business with the GST payable on my rental income ?

kindly explain !! Thanks in advance..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 October 2024 No, that is not eligible.

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