Gst on shed rent
Querist : Anonymous
Ours is a manufacturing unit with a leased premises. We are paying monthly rent of Rs.82000/- and deducting TDS 10%. GST is applicable . how much
Querist : Anonymous
**1. **GST Applicability on Rent:**
**A. **GST Rate:**
- **GST Rate on Rent:** Rent for commercial properties is subject to GST. As per the GST framework, the applicable GST rate on rent for commercial properties is **18%**. This includes both Central GST (CGST) and State GST (SGST) or Integrated GST (IGST) if it is an interstate transaction.
**B. **HSN Code:**
- **HSN Code for Renting:** The HSN code for renting of immovable property is **9972**. This code covers services related to renting of immovable property.
**2. **Calculation and Payment:**
**A. **GST Calculation:**
- **Rent Amount:** Rs. 82,000 per month.
- **GST Rate:** 18%.
**GST Amount = Rent × GST Rate**
**GST Amount = Rs. 82,000 × 18% = Rs. 14,760**
- **Total Amount Payable:** Rs. 82,000 (rent) + Rs. 14,760 (GST) = Rs. 96,760.
**B. **TDS Deduction:**
- **TDS on Rent:** You are deducting TDS at 10%, which applies to the rent amount but not the GST portion. TDS should be calculated on the rent before GST.
**TDS Amount = Rent × TDS Rate**
**TDS Amount = Rs. 82,000 × 10% = Rs. 8,200**
- **Total Payment to Landlord:** Rs. 82,000 (rent) + Rs. 14,760 (GST) - Rs. 8,200 (TDS) = Rs. 88,560.
**3. **Documentation and Compliance:**
**A. **Invoice:**
- **GST Invoice:** Ensure that the landlord issues a GST-compliant invoice including the rent amount, GST, and HSN code (9972).
**B. **Reporting:**
- **GST Returns:** Report the GST on rent in your GST returns (GSTR-1 and GSTR-3B).
**C. **Claiming ITC:**
- **Input Tax Credit (ITC):** You can claim ITC on the GST paid on rent if the rented premises are used for business purposes. Ensure that the rent is supported by a proper GST invoice.
### **Summary**
1. **GST Rate on Rent:** **18%** GST is applicable on commercial property rent.
2. **HSN Code:** **9972** for services related to renting of immovable property.
3. **GST Calculation:** Rs. 14,760 on Rs. 82,000 rent.
4. **TDS Deduction:** Deduct TDS at 10% on the rent amount, not on GST.
### **References**
- **GST Rate Notifications:** Relevant notifications regarding GST rates on renting of immovable property.
- **HSN Code 9972:** Covers renting of immovable property.
For precise compliance and further advice, consulting with a GST professional or tax advisor is recommended.
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