Registration of a partner of LLP under GST

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This discussion clarifies whether an LLP partner receiving remuneration over £20 lakh and monthly rent of £60,000 needs GST registration. Remuneration isn't considered a supply for threshold calculation, and rental income below the limit means no registration is required for the partner. However, from 10th October 2024, the LLP itself may need to pay 18% GST under Reverse Charge Mechanism (RCM) on rent paid to unregistered partners for commercial property, with the option to claim Input Tax Credit (ITC).

Harshal Jain

Harshal Jain (Querist)

02 July 2020 A partner of a LLP is receiving remuneration from LLP which is more than Rs.20 lakhs and he is also receiving rent from that LLP of Rs.60000 per month. Whether the partner is liable to take registration under GST or not??

CA Ankith Jain

CA Ankith Jain (Expert)

03 July 2020 As remuneration to partner is not considered as Supply, hence while calculating threshold of 20L we could exclude the same. Since rental income is below the threshold limit, need not take the registration.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

29 October 2026 The partner needn't register, but since 10-10-2024 the LLP (if registered) must pay 18% GST under RCM on rent for commercial property taken from an unregistered person such as the partner — and can claim it as ITC.

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