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Can my tenant (GST registered business) claim the GST they paid on rent to me ?

Prakhar (BUSINESSMAN) (140 Points)

12 August 2023

I (GST registered proprietor) have rented out a commercial property to a GST registered business .

I am going to charge GST on rent from them .

1. Can my tenant claim the GST on rent they paid to me ?

2. How will I show GST on rent in my accounts ?

3. do I have to upload it my GST returns ? or will they upload it from their end ?

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5 Replies

Rajeev Yadav (51 Points)
Replied 13 August 2023

Since you have a gst registration and it is commercial property let out for commercial purpose, you need to issue gst invoice and charge gst accordingly (18%).

yes your tenant can claim input on rent as it will be a input service for them.

you also need to upload in your gst return.

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RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 13 August 2023

1. Can my tenant claim the GST on rent they paid to me ?

-> Yes, Your tenant can claim GST ITC.

2. How will I show GST on rent in my accounts ?

-> In Your accounts You can show the Rental amount Income as Rent Received & GST as Output Tax...

3. do I have to upload it my GST returns ? or will they upload it from their end ?

-> You only the responsibility for the filing of this GST bill in Your GSTR 1 return.

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Prakhar (BUSINESSMAN) (140 Points)
Replied 16 August 2023

ok sir ,what about tenant whose isn't GST registered ? will they also have to pay GST on rent ?because in such case they won't be able to claim it .

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 16 August 2023

If a tenant is not registered but landlord is registered then landlord will issue tax invoice and accordingly tenant will discharge rent along with applicable GST on it.

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RAJA P M ("Do the Right Thing...!!!") (127231 Points)
Replied 16 August 2023

Tenant not registered under GST then he can't claim ITC of the bill.
Bcoz, he is unregistered under GST.

It's treated under tenant's Expenditure account...

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