GST on Rent with Jointly Owned Property

One Commercial Property jointly owned by husband and wife

Now Husband is registered under GST

While letting out the property, GST is applicable on whole rent or on Husband Portion

Further,

In above example, suppose Husband use 30% of area and remaining 70% of area given on rent.

Out of 70% area, if we pay gst on only remaining 20% of area and show 50% in wife..... would it will be ok?
Replies (2)
Quick Summary
This discussion clarifies GST implications for jointly owned properties, particularly when one owner is GST registered. It explains that GST is applicable if the total rent exceeds ₹20 lakhs annually. The liability is generally shared based on ownership ratios. If one owner uses part of the property and rents out the rest, GST is calculated on the rented portion. The rate depends on whether it's commercial (18%) or residential (12%) property. It's advised to consult a tax professional for accurate calculations and compliance.

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.

Wife's turnover below 20 lacs and not registered under GST whereas husband is registered under gst

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