rental income
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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