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GST on commercial property rented out for commercial purpose

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Prakhar

BUSINESSMAN

138 Points Posted on 09 July 2023

Owner of commercial property is a medical practitioner (annual income from medical profession > 10 lakh ,Unregistered in GST) .

Commercial property rented out to a GST registered business ,rent fixed at >Rs.50,000/month .

Annual rental income of owner from all rental properties < 10 lakhs.

Do owner have to take GST registration and collect GST on rent from tenant or do tenant is liable to deposit GST under RCM ?

Replies (3)

Quick Summary

This discussion clarifies GST obligations for owners renting out commercial property. It explores whether the landlord, a medical practitioner with income over ₹10 lakh but unregistered for GST, needs to register and charge GST on rent exceeding ₹50,000 per month. The conversation also delves into whether the tenant, a GST-registered business, is liable to pay GST under the Reverse Charge Mechanism (RCM) and clarifies the ₹20 lakh threshold for GST registration concerning total annual aggregate turnover.