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rental income

deepika (student) (42 Points)

13 September 2017

I have three properties which are let out
1. commercial property -gst collected and paid
2. residential - rental income less than 3lac per annum - should I collect GST and pay?
3. half commercial and half residential- rental income less than 10lacs should I collect GST and pay?

please help me

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23 Replies

prasad patil (45 Points)
Replied 13 September 2017

Residential property doesn't attract gst nd Commercial property subject to gst

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

I want the clarity in Q1.
What is the meaning of GST collected and paid...?

deepika (student) (42 Points)
Replied 13 September 2017

1st property is fully commercial and per annum rent he pays to all the partners together is around 65 lac so he pays GST as a part of rent we pay it to govt

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

Then why you ask 3rd question. Bcoz, already you are liable under GST then the another 1/2 commercial property income fall in GST tax.. So, You ll be calculate the (3) income under GST...
The residential income not under GST. Bcoz, it's exempted. But, you can show it your books of accounts for using Income Tax purpose....

(My ans is the property is one hand/owner/company)

deepika (student) (42 Points)
Replied 13 September 2017

so you mean to say just cause one of the property rental crosses the limit of 20lac I need to collect tax from other property even if it doesn't reach the limit of 20lac per annum

deepika (student) (42 Points)
Replied 13 September 2017

one more doubt is the same three properties are held by my brother but his total per annum rental income doesn't cross the limit of 20lac per annum, as his share is lesser dies he also have to collect and pay GST?

Mubarak R momin (CMA) (145 Points)
Replied 13 September 2017

in whose name the GST is registered for 1 st property if it is under the name firm holding 1 st property then the amt which your brother gets will not be covered under GST seperately at his individual capacity

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

(so you mean to say....)
First of you think, One property or more than one property is not a matter. A Assessee get income from Commercial property and any other business / service turn over above 20lakhs. Then he ll fall under GST. After his all income under GST then he ll be collect GST and pay it to Govt....

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

(one more doubt is the....)
If his turn over less than 20lakhs no need registration under GST.
The Turn over is not only rental income. It's overall income. In case he any other business. Also calculate the business income and the rental income. Both calculation is less than 20lakhs no need registration. Above 20lakhs registration mandatory....

Mubarak R momin (CMA) (145 Points)
Replied 13 September 2017

Business income will not be considered in the limit of 20 lacs for individual capacity as it doen't covered under definituon of taxable supply under gst act so only those income which attract gst at his individual capacity will be considered for th threasehold of 20 lacs

Mubarak R momin (CMA) (145 Points)
Replied 13 September 2017

In this case they are charging and colecting GST on 1 st property so there must be regestration in any name and if it is in the name of his brother then he compulsarily have to charge GST on the 3 rd property irrespective of level of supply

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

What you mean Mr Momin.,
Why not consider both income from Business and Commercial rental as threshold limit...?

RAJA P M ("Do the Right Thing...!!!") (127542 Points)
Replied 13 September 2017

(In this case they are charging and colecting GST on 1 st property so there must be regestration in any name and if it is in the name of his brother then he compulsarily have to charge GST on the 3 rd property irrespective of level of supply)
YES I SAID IT EXACTLY IN MY 2ND REPLY...

Mubarak R momin (CMA) (145 Points)
Replied 13 September 2017

Income from business i.e. profit from entity other than properitorship is not considered as taxable supply under GST thats why it should not be added to other income of the person at his individual capacity