rental income

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Saurabh Jain

Saurabh Jain (Querist)
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10 July 2017 hello sir my gross rental income is 2100000/.Do I required to take the gst no..

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2017 Yes GST registration is required if rent is from other than residential property.

Saurabh Jain

Saurabh Jain (Querist)
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10 July 2017 if we can divide it into two parts

Saurabh Jain

Saurabh Jain (Querist)
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10 July 2017 under furniture and fixture

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2017 Even then GST applicable don't opt for it. You are not going to bear it.

Saurabh Jain

Saurabh Jain (Querist)
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10 July 2017 then pls help me with the solution as Iam not interested in taking gst no as my tenant is not giving and is not long lasting also.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2025 Got it — you have gross rental income of ₹21,00,000 and are wondering about GST registration because your tenant is not ready to provide a GST number and the tenancy may not be long-term.

Here’s the breakdown and options:

✅ When is GST applicable on Rent?
GST applies on rent of commercial/ non-residential property if the aggregate turnover exceeds ₹20 lakh (₹10 lakh in some special states).

Rent from residential property for residential use is exempt from GST.

Since your rental income is ₹21 lakh, GST registration is triggered if it’s for commercial property.

✅ Your Situation
If rent is from commercial property (office/shop/warehouse etc.), GST is applicable.

You must register for GST as turnover is above ₹20 lakh.

If tenant is refusing GST number, that does not exempt you.

GST liability is on the landlord/service provider, not tenant.

❌ Can dividing rent into furniture and fixtures help?
GST on rent is on lease of immovable property.

Rent on furniture and fixtures alone is a supply of goods, but generally bundled rent is treated as immovable property lease.

Separating rent to avoid GST is generally not acceptable legally.

⚠️ Consequences of Not Registering for GST:
You are liable to pay GST on rent collected (18% on commercial rent) even if tenant refuses.

You cannot issue valid tax invoices.

You may be subject to penalties and interest for non-compliance.

You lose input credit benefit if applicable.

💡 Practical Suggestions
Register for GST anyway — it’s mandatory above threshold.

Inform tenant that GST is applicable as per law.

If tenant refuses to pay GST, you may have to:

Absorb GST cost yourself (not ideal), or

Negotiate rent terms to cover GST.

If tenancy is very short-term or casual, but turnover exceeds limit, GST still applies.

If rent is from residential property for residential purpose, no GST — no registration needed.

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