Rental income to a Propreitor
This query is : Resolved
17 February 2025
Dear Experts,
One of my friend is running a Proprietary business with GST registration under Regular scheme. He has his place of business in a rented premisses.
At the same time, he owns a building in some other place, which he wants to let out for rent. His
doubt is, whether he has to admit the rent amount, which he receives from his tenant, as service turnover in his GST or not ? Will the consequence vary according to the status of the occupant, viz. Commercial or Non-Commercial ?
Kindly advice.
One of my friend is running a Proprietary business with GST registration under Regular scheme. He has his place of business in a rented premisses.
At the same time, he owns a building in some other place, which he wants to let out for rent. His
doubt is, whether he has to admit the rent amount, which he receives from his tenant, as service turnover in his GST or not ? Will the consequence vary according to the status of the occupant, viz. Commercial or Non-Commercial ?
Kindly advice.
17 February 2025
if the rent is from dwelling purpose (non commercial) then it is exempted. If the tenant uses for business purpose then GST is applicable @18%
18 February 2025
Thank you Sir. If the tenant is using the premises for Commercial purpose, then should the landlord raise an invoice for the rent from his existing business itself and subsequently admit the rent as service turnover in GST ?
18 February 2025
yes. he/she should raise gst invoice as usual and that automatically gets added to his/her turnover.
18 February 2025
however, forthe income-tax purposes, you will have to segregate the turnover for income from house property and business income.
18 February 2025
Thank you so much Sir.
18 February 2025
To add one more point- please ensure that SAC of Renting services has been added to you GSTIN. If not, it is suggested to amend suitably
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18 February 2025
Yes Sir, Thank you.
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