This discussion clarifies the Goods and Services Tax (GST) implications for a Non-Resident Indian (NRI) owning commercial property in India and renting it out. The key question is whether the NRI needs GST registration or if the Indian tenant is responsible for paying GST under the reverse charge mechanism. The consensus is that the tenant, PQR (India), must pay GST on the rental income on a reverse charge basis.
13 February 2020
XYZ is a Non – Resident Indian staying in U.K., He is owning a commercial office in India which he wants to rent out to PQR(India). XYZ need to obtain GST Registration as non – resident taxable person or PQR need to pay GST under reverse charge?