GST on rent

298 views 4 replies
Mr. X have a GST registration for his distribution business. He have a commercial building which have given for rent to Mr Y.

Following are my doubts.

1. Whether he have to collect GST from tenant??

2. Rent amount received will be taxable under the head income from house property. Then how we will adjust this rent difference at the time of filing of GSTR9 C.
Replies (4)
1). Yes you have to collect GST @ 18% from the tenant since it is a Commercial Property. Under the GST Law, Rental Income received from letting out Residential House Property for Residential purpose is Exempted from GST vide Notification No. 12/2017 - Central Tax, dated 27th June 2020. However Rent from Commercial Property is Taxable under GST.

Therefore you have to collect GST @ 18% from your tenant since you are a GST Registered Person.

GST Rate : 18%

SAC CODE : 997212

DESCRIPTION : Rental or leasing Services involving own or leased Non-Residential Property. 

2). Under the Income Tax Act 1961, in you ITR, the Rental Income will be taxable under the head "INCOME FROM HOUSE PROPERTY."

Regards,
Shivam RC.

I also Agree with Mr. Shivam Opinion 

@ Mr. Jomon PB.,

1. Yes... Also refer Mr Shivam RC view.

2. As per Income tax the income compute under "Income from House Property".
But, in GSTR 9(& 9C) how will make difference? Can You elaborate Your view.

Note : The Taxpayer must be issue Tax Invoice as per GST for the Rental Income. After (then) it will be matched with annual return.

At the time of filing of  GSTR 9C, we are starting with turnover as per Audited Financial Statement and ending with taxable turnover. How we will include the rental income in GSTR 9C become the said income is not shown in P & L A/c of Mr X.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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