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Gst on unpaid rent

john (proprietor) (48 Points)

31 March 2019

GST on rental income which became due but the rentee did not pay any rent. Am i supposed to pay tax on rent which i will not be getting ? how to reverse any GST i paid on my own on due date without receiving actual rent or tax amount?

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9 Replies

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 31 March 2019

Yes you are liable to pay GST even if the tenant has not paid the Rent .

john (proprietor) (48 Points)
Replied 31 March 2019

ok. i am liable to pay tax but if the tenant refuses to pay rent, what will happen to the tax i have already paid?

pritesh (CA Final student) (7101 Points)
Replied 31 March 2019

You are required to pay tax.. on bad debts you cannot reversed the tax....

by the way rent is received for commercial property or residential property?

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 31 March 2019

As per 2nd Proviso of Section 16 CGST Act : Registered tenant have to Reverse the ITC for the same If payment is done to supplier (landlord ) within 180days

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pritesh (CA Final student) (7101 Points)
Replied 31 March 2019

Yes agree with pankaj sir

john (proprietor) (48 Points)
Replied 02 April 2019

sorry for the late response but

1. the property is commercial office space

2. tenants are all unregistered so no point of reversal of ITC.

3. if tenant wont pay any rent say for 6 months or 1 year, does that mean i will have to pay tax on all the months and not even sure if i will get my own rent let alone tax?

RAJA P M ("Do the Right Thing...!!!") (127269 Points)
Replied 02 April 2019

Originally posted by : john
	sorry for the late response but 1. the property is commercial office space 2. tenants are all unregistered so no point of reversal of ITC. 3. if tenant wont pay any rent say for 6 months or 1 year, does that mean i will have to pay tax on all the months and not even sure if i will get my own rent let alone tax?