If GST Reg. person has Rent Income from HP - Treatment?

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This query is : Resolved

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This discussion clarifies the GST treatment for rent income from a jointly owned property. Rent received for residential purposes is exempt from GST. However, rent from commercial property is subject to GST if the owner's turnover exceeds the threshold. Separate invoicing and record-keeping are required for commercial rent, and all GST filings are done on a GSTIN basis.

A B Kundu

A B Kundu (Querist)

27 June 2020 ‘A’ and ‘B’ co-owned a house property having 2 rooms (50% share each). One room is given for rent for residential purpose,i.e., as paying guest, food charges to be taken extra. 2nd room is given to some proprietorship for for running its business,i.e., for commercial purpose.
‘A’ is salaried person & ‘B’ has proprietorship business having GST registration.
For e.g.: rent received p.m. from 1st room is Rs.8,000 & 2nd room is Rs.15,000.

Queries are:
1)Whether ‘A’ and ‘B’ has to issue separate invoice to their tenants being Normal Invoice by ‘A’ and GST invoice by ‘B’ and the food charges, electricity recovered to be included in the taxable value?

2)If ‘B’ has to issue GST invoice, whether he has to maintain separate serial number?

3)Whether any exemption is available under GST for rent received for for residential purpose?

4) How to deal this rent turnover in Annual Return,i.e., GSTR-9?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 June 2020 1 ‘A’ and ‘B’ has to issue separate invoice to their tenants being Normal Invoice by ‘A’ and GST invoice by ‘B’ and with 5% on food charges, electricity recovered not to be included in the taxable value.
2 yes, separate serial number required.
3 Rent received for residential purpose is exempt.
4 Show it under exempt turnover.

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Punit Gupta

Punit Gupta (Expert)

27 June 2020 1. GST is to be charged on rent received from renting any immovable property let out for business or commercial purposes provided the threshold of Rs.20 lakh in a Financial year.
So rent from residential purpose is GST exempt.
And GST to be applicable on rent from from Commercial purpose if threshold is crossed.
2. If the threshold is crossed and GST becomes applicable, separate accounting and record keeping is required, and combined data of all other businesses to be reported while filing returns under GST.

3. Already shared, rent received from property given for residential purpose is exempt from GST.

4. All the returns under GST at to be filed GSTIN wise and not separate business wise. Thus all the figures from separate businesses to be combined for all such filings.

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A B Kundu

A B Kundu (Querist)

28 June 2020 Thank you for your guidance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 June 2020 Welcome........................

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