GST Rate Applicability

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicability on a 15% revenue share from a restaurant business operating on leased land. The consensus is that GST at 18% is applicable. The relevant HSN/SAC code suggested is 997212 for rental or leasing services involving non-residential property, or potentially 999799, with advice to proceed with charging 18% GST on the revenue share.

NK1976

NK1976 (Querist)
Follow

07 January 2020 Dear Sir,
Our company's land in one state and that land we have given on lease. Started a restaurant at that land and we will get 15% share of the restaurant business of the month.
Right now my question is what will be the rate of GST on this 15% share.

Please, Give us your valuable advice

Thanks & Regards
NK

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 January 2020 18% GST applicable on it.

Message likes : 1 times

NK1976

NK1976 (Querist)
Follow

07 January 2020 But what is the HSN/SAC Code

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 January 2020 SAC code 997212 Rental or leasing services involving own or leased non-residential property

NK1976

NK1976 (Querist)
Follow

08 January 2020 As per me I have to charge 18% GST in bill of "revenue sharing", on rental income also GST is 18%. Revenue sharing is taxable under GST. HSN 999799.
Please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 January 2020 Yes go as proposed.........

Message likes : 1 times

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