I was registered under VAT in Punjab and now migrated to GST in Punjab for my business(sole proprietorship) of textiles based in Amritsar.
In the name of individual I am receiving monthly rent of around rs.40,000 per month by renting 2 immovable commercial properties and both the properties are situated at New Delhi.I have inherited these from my parents.
Do I need to charge GST on rent?
If so, Can I use my business GST registration no. And charge IGST on rent?
I have textile business and will be having IGST credit at all the time. As we are not entitled for refund. Can we adjust the ISGT charged on rent with the IGST credit of yarn?
The confusion is some are saying I need to take separate registration under GST at New Delhi . Do I really need to? I am not have any business establishment in New Delhi.
Professional and detailed advice will be highly appreciated. thanks in advance.
Keshav Kakar,
9888216543.
keshavkakar @ hotmail.com
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confusion in case of immovable commercial property and sole proprietorship business.
Replies (9)
yes you have to pay gst on rent received by you from your commercial property at delhi.....
.but you need not to register separately in delhi for this (if you want than you can, but it is not necessary).....
if you chose not to register in delhi than you have to charge igst on rent amount. and you can also utilise your business credit against this amount.....(but if you register in delhi than you will have to charge cgst and sgst and you will not able to adjust your credit against gst on rent).
.but you need not to register separately in delhi for this (if you want than you can, but it is not necessary).....
if you chose not to register in delhi than you have to charge igst on rent amount. and you can also utilise your business credit against this amount.....(but if you register in delhi than you will have to charge cgst and sgst and you will not able to adjust your credit against gst on rent).
Basic principle of GST law is destination based taxation. As you have commercial property in Delhi but registered in Amritsar for your business you have two options:
1) Get yourself registered in Delhi and issue Rent Invoice charging CGST+ SGST
1) Get yourself registered in Delhi and issue Rent Invoice charging CGST+ SGST
cont reading....
2) No need for separate registration in Delhi and in your existing registration in Amritsar Issue Rent Invoice and charge IGST.
You may take ITC on tax pd on rent.
Choose which is more suitable to you. For more clarification you may mail me at
taxadvisor4u @ gmail.com
2) No need for separate registration in Delhi and in your existing registration in Amritsar Issue Rent Invoice and charge IGST.
You may take ITC on tax pd on rent.
Choose which is more suitable to you. For more clarification you may mail me at
taxadvisor4u @ gmail.com
As you are landlord GIST benefit will be available to tenant not to you if he is registered which I have written in the post.
@ Chatra....I think he asking whether he can adjust unutilized credit of business against liability of rent or not...
yes I want to confirm this only
the answer is yes you can take credit if you don't take separate registration in delhi.
thanks. It would be great if you can guide under which section or chapter. As in textile refund is not permitted. hope it will not be treated as refund. As I will be receiving IGST amount for tenants. But not paying and adjusting with the excess business IGST.
refund is when you receive amount in cash....this is not at all refund.....
simple rule of taking credit is total input tax paid on input is allowed against the output liability......credit is disallowed only if expressly said in any act....section 17 is the section which disallow certain credits...and your case is not in there.....if you take only one registration than your business will be considered as one......and credit will be allowed......if you take separate registration than both of your units will be considered separate units and credit will be disallowed.....
By the way why are you saying that textile business will not be allowed refund? from where do you get this idea?
simple rule of taking credit is total input tax paid on input is allowed against the output liability......credit is disallowed only if expressly said in any act....section 17 is the section which disallow certain credits...and your case is not in there.....if you take only one registration than your business will be considered as one......and credit will be allowed......if you take separate registration than both of your units will be considered separate units and credit will be disallowed.....
By the way why are you saying that textile business will not be allowed refund? from where do you get this idea?
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