Dear Sir/Madam,
My client running a restaurant (rental property) @ 5% without ITC. But landlord demanding GST on rent paid by us. Monthly rent ₹ 1.20K. We have deducted TDS. But till date we haven't pay GST.
If landlord submitted GST invoice of rent, we liable to pay 18% GST. While we pay flat rate @ 5%?.
Kindly suggest to me. GST on rent payable or any RCM applicable.
Thanks
If your Landlord is registered under GST then you have to pay rent along with GST.
your landlord is correct in demanding GST on rent @ 18%, in anyway you are not eligible to claim ITC since you are into restaurant business and billing at the rate of 5%. But GST on rent is payable by you even if you are not eligible to claim ITC on it.
CAclubindia
