GST PAYMENT REGARDING

You must continue raising tax invoices by treating the tenant as an unregistered person (B2C) and pay the required GST liability to the government; halting invoices or issuing a credit note simply because the tenant's GSTIN is inactive is a violation of GST law.

When a tenant's GST registration becomes inactive, you treat them as an unregistered person from the date their registration lapsed.

For current and future invoices:
- Raise B2C invoices for the rental amount plus 18% GST
- Report in GSTR-1 under Table 7 (B2CS) if invoice value below Rs 2.5 lakh, Table 5 if above
- Your GST liability and payment to government stays the same

For past invoices (when tenant was still registered):
- No need to issue credit notes unless the original invoices had errors or the rental was genuinely not supplied
- The tenant losing their registration does not reverse your past GST liability or entitle them to a reversal of previously claimed ITC

The tenant must reverse any ITC they claimed during the inactive period on their own side. That is their compliance burden, not yours.

If you manage multiple commercial tenants with varying GST statuses, monthly GSTR-1 reconciliation avoids these classification errors. This [GST filing guide](https://taxgarden.in/blog/affordable-gst-filing-service-india-2026) covers B2C reporting and invoice management.