GST on RENT

819 views 18 replies
I have rented out premises to SBI and rent is 92000 per month. kindly let me know whether I need to register for GST and charge GST to bank?
it is optional for you to register, not mandatory........my advise is not to register (bank will pay GST instead of you and take credit of the same if you not register yourself)
For want of double clarity, if landlord is unregistered also below Rs 20 lakh turnover, the tenant has to pay GST of 18% under RCM.
Hope this is correct. If it is correct, tenant can simply deduct GST from monthly payout and balance has to passed on to the landlord. In this case Composition will not apply as rent is coming under Service. Pl seek agreement or disagreement...

suppose the rent is 100000 and rate of tax is 18 %......than the tenant will have to pay GST on 100000 @ 18% (i.e. 18000) to the governement and he should not deduct this amount from the rent which he has to pay to landlord. Tenant will  have to pay landlord full 100000.....tenant will get input credit of Rs 18000 which he has paid on reverse charge basis hence question of deducting it from the rent does not arise.....

even if the tenant is a composition dealer then also the position will remain the same.....because sec 9(4) clearly says that if "registered" dealer buy "GOODS or SERVICE or BOTH" from an "unregistered" dealer than he has to pay tax on reverse charge basis......it does not distinguish between regular or composition dealer.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details