Master in Accounts & high court Advocate
9610 Points
Posted on 05 September 2024
GST on rent for jointly owned property can be a bit complex. Here's a general overview: 1. *GST applicability*: GST is applicable on rent if the joint owners are providing accommodation services and the total rent exceeds ₹20 lakhs (�20,00,000) in a financial year. 2. *Joint ownership*: If the property is jointly owned, the GST liability would typically be shared among the co-owners in the ratio of their ownership. 3. *Rent allocation*: If the husband uses 30% of the area and rents out the remaining 70%, the GST liability would be calculated on the rented portion (70%). 4. *GST rate*: The GST rate would be 18% (9% CGST + 9% SGST) if the property is classified as a "commercial property" or 12% (6% CGST + 6% SGST) if classified as "residential property". 5. *Input credit*: If one of the co-owners (e.g., the wife) is a GST registered person, she may be eligible to claim input credit on the GST paid on rent. 6. *Tax returns*: The co-owners would need to file GST returns (GSTR-1, GSTR-2, and GSTR-3) and report the rent income and GST liability. It's essential to consult a tax professional or chartered accountant to ensure accurate GST calculation, compliance, and potential input credit claims. They can provide personalized guidance based on your specific situation.