Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

GST on Shop Rent paid by Regd. GST Dealer to unregistered Landlord

02 July 2017

I am registered GST Dealer & paying monthly shop rent of Rs.37,000/- p.m. to unregistered Landlord who is not liable to be registered in GST. Please advice how to make rent payments in future.

Reply
Follow
Share

29 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174993 Points)
Replied 02 July 2017

You will be required to pay GST on rent @ 18% under RCM.

Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The service recepient (i.e., who pays reverse tax) can avail input tax credit.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Devendra Tripathi (6 Points)
Replied 02 July 2017

Thanks

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174993 Points)
Replied 03 July 2017

Most welcome

Raj King (2 Points)
Replied 19 July 2017

sir,

if i am paying a 20000 rent then i want to deduct gst @ 18% from the rent paying is that right or on behalf of landlord i need to remit separate 3600 to tax dept.

Manish kumar Rai (Article) (122 Points)
Replied 19 August 2017

dear sir,

if a registered dealer pay shop or gowdown rent to unregistered dealer rs.10000/- P.M, in this case, provision of GST exempt for supply received from unregistered dealers for less than rs.5000/- will apply or not.

Upgrade to CAclubindia Pro. Subscribe Now!

rajesh Pandey (abc) (102 Points)
Replied 19 August 2017

sir, if i am paying a 20000 rent then i want to deduct gst @ 18% from the rent paying is that right or on behalf of landlord i need to remit separate 3600 to tax dept.

Read more at: /forum/gst-on-shop-rent-paid-by-regd-gst-dealer-to-unregistered-landlord-400795.asp#reply

If Lanlord is Registered :

Then he will charge and deposit GST

If lanlord is Unregistered :

You can chane the agreement of say 17000 and then pay GST (RCM) and take credit.but in this case lanlord will get only 17000

rajesh Pandey (abc) (102 Points)
Replied 19 August 2017

ear sir, if a registered dealer pay shop or gowdown rent to unregistered dealer rs.10000/- P.M, in this case, provision of GST exempt for supply received from unregistered dealers for less than rs.5000/- will apply or not.

Read more at: /forum/details.asp?mod_id=400795&offset=1

No exemption notification is applicable upto 5000 if even 1 rs exceeds then you have to pay RCM (GST) on full amount.

Manish kumar Rai (Article) (122 Points)
Replied 19 August 2017

hello rajesh sir,

is there any exemption for godown rent payble to URD rs.10000/- or below per month

Manish kumar Rai (Article) (122 Points)
Replied 19 August 2017

No exemption notification is applicable upto 5000 if even 1 rs exceeds then you have to pay RCM (GST) on full amount.

Read more at: /forum/details.asp?mod_id=400795&offset=1

but 5000/- is per day exemption if we pay 10000/- per month then what??

Manish kumar Rai (Article) (122 Points)
Replied 19 August 2017

Services by a person by way of- (a) conduct of any religious ceremony; (b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act: Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are one thousand rupees or more per day; (ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day; (iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month.

Please clearify whether above provision for renting shop applies to all business or to Trust only.

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174993 Points)
Replied 20 August 2017

@ Raj King: No deduction of GST from rent paid is not right. You have to pay extra.... GST under RCM, for which you can get back ITC, provided you are registered under normal scheme.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174993 Points)
Replied 20 August 2017

@ Manish Kumar Rai: The exemption is available only to 'renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961

Mohit (Student CA IPC / IPCC) (27 Points)
Replied 31 August 2017

IT IS A SUPPLY OF SERVICE FROM UNREGISTERED DEALER. SO, A REGISTERED PERSON RECEIVING THE RENTING SERVICE FROM UNREGISTERED DEALER IS REQUIRED TO PAY GST UNDER REVERSE CHARGE IF RENT PER DAY EXCEED RS. 5000/- PER DAY.

ALOK GUPTA (Accountant) (30 Points)
Replied 12 September 2017

Originally posted by : Dhirajlal Rambhia
	You will be required to pay GST on rent @ 18% under RCM. Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The service recepient (i.e., who pays reverse tax) can avail input tax credit.