Rental income

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This query is : Resolved

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This discussion clarifies GST obligations for rental income. Generally, GST is only applicable to commercial property rentals, not residential. The conversation also touches on the availability of Input Tax Credit (ITC) for GST paid on expenses like building rent and vehicle maintenance, which can be offset against GST payables from outward supplies.

suresh

suresh (Querist)
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22 February 2021 We have doing business under proprietorship and registered in GST.

1. We have received rental income of Residential property around 10 Lakh PA
2. And we have planning to give another commercial property for rent and further amount of 12 Lakhs per annum.

Kindly clarify We have liable to collect GST for Commercial property only or both Residential also.

What is the rental GST Rate and threshold limit.

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 February 2021 You are liable to collect GST only for commercial property.

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suresh

suresh (Querist)
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22 February 2021 Sir Thanks your reply

Can we off set of this ITC for some other business GST Payables.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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22 February 2021 How would you get ITC since this is your outward supply

suresh

suresh (Querist)
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23 February 2021 Thanks Altamush Zafar sir..

We have doing rent a cab business under proprietor concern.. and we have collected rental income along with GST rate of 18%, So if I collected GST from Commercial Rent.. Can we offset this GST as ITC with our business GST Payables.

Thanks in advance.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 February 2021 In both the cases you are collecting GST and then paying. In both cases you are the supplier
Input Tax Credit is available where you pay GST to the supplier or service provider

suresh

suresh (Querist)
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23 February 2021 Thanks Altamush Zafar sir..

In my business We have paid rent to the Building owner.. They are charging along with GST..

And vehicle Repaire & Maintanance we have received the bills with GST amount..

So.. My query is can we adjust these GST Payable as ITC.. ( In rent a cab we are collecting 12% GST from my service receipient)

Advance thanks for your reply.

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