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Gst rate for renting of immovable property(commercial shop)

Venkatramana Shastry C (Student CA Final ) (90 Points)

01 June 2017

What is the exemption limit and rental income per annum /monthly limit for applicability of GST?

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53 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 01 June 2017

No basic exemption limit for charging GST on rental income, other than 20 lakhs aggregate GST exemption limit (intrastate).

satya (Executive Excise) (1839 Points)
Replied 01 June 2017

sir,

How much GST rate on Renting of immovable property service.

Kaushik (Professional) (549 Points)
Replied 01 June 2017

Originally posted by : sathya
	sir, How much GST rate on Renting of immovable property service.

It is 18%

IS Kakar (B.Com) (109 Points)
Replied 01 June 2017

Originally posted by : Dhirajlal Rambhia
	No basic exemption limit for charging GST on rental income, other than 20 lakhs aggregate GST exemption limit (intrastate).

I have ental income from one place in delhi and other in gurgaon, will it be considered interstate or intrastate because of Delhi NCR ?

Though my aggregate limit is less than 20 lakhs, so am I liable to register under GST ?

How much is GST rate for renting of immovable property ?

Please clear the doubt.

Thanks

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 01 June 2017

As per Sr. no. 7 of Schedule 'Service Tax Exemptions to be continued in GST as decided by GST Council"

Services by way of renting of residential dwelling for use as residence is exempted.

All other renting services will be charged at 18%. (If applicable, when exceeding the basic limit of 20/10 lakhs)

The basic exemption limit is for intra state supply, so an assessee having interstate supply cannot avail the exemption and has to charge GST right from Rs. one. For renting service there would not be any inter state supply. Still any more clarification awaited from CBEC.

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CA PARMOD BANSAL (PROP) (30 Points)
Replied 06 June 2017

Originally posted by : Dhirajlal Rambhia
	As per Sr. no. 7 of Schedule 'Service Tax Exemptions to be continued in GST as decided by GST Council" Services by way of renting of residential dwelling for use as residence is exempted. All other renting services will be charged at 18%. (If applicable, when exceeding the basic limit of 20/10 lakhs) The basic exemption limit is for intra state supply, so an assessee having interstate supply cannot avail the exemption and has to charge GST right from Rs. one. For renting service there would not be any inter state supply. Still any more clarification awaited from CBEC.

If any person takes commercial premises on rent @ 1.00 lac per month from a person who is not registered in GST as it is below threshold limit, will the tenant have to pay GST on reverse charge basis as it is availing service from Unregistered person

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 06 June 2017

"If any person takes commercial premises on rent @ 1.00 lac per month from a person who is not registered in GST as it is below threshold limit, will the tenant have to pay GST on reverse charge basis as it is availing service from Unregistered person"

@ CA PRAMOD BANSAL: If it is your query, the answer is YES, as per section 9(4) of GST bill.

AND It applies to all the supplies from unregistered persons to registered person.

Irony of the provision is that: In a reverse charge mechanism, government does not earn anything as tax payer gets credit of tax paid. Thus, in effect, it is a revenue neutral exercise.

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IS Kakar (B.Com) (109 Points)
Replied 21 June 2017

Dear Sir

As discussed earlier, I have two places given on rent, one in gurgaon and other one in delhi. Please inform which tax will be charged on invoice for both parties, whether it will be CGST, IGST or SGST ?

My GST number is registered in delhi

Rent parties

1. Delhi -

2. Gurgaon -

At present I have taken only single registration for delhi and has shown my residence as place of business, which is similar to what I had during service tax registration, do I need to take separate registrations for both places given on rent in delhi and gurgaon.

Kindly clear my doubt

Thanks

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 21 June 2017

As you have already taken registration at Delhi..........being registered, liable to charge GST ....... For Delhi unit CGST+SGST ......& for Gurgaon ..IGST.

Though another option is to be checked if your supplies qualify for intrastate in each state, so that no gst liability if unregistered.............but some clarity awaited.........

IS Kakar (B.Com) (109 Points)
Replied 21 June 2017

Thanks for your valuable advice.

KAILASH JADHAV (14 Points)
Replied 24 June 2017

Sir, I am Business man & have earnings through Trading Business, Renting of Property, Shares etc. My gross total Income come to 18 laks. And Income from renting of property comes to 12.75 lakhs per annum.

So, as per GST rule 20 lakhs limit, is for only rental income rs. 20 lakhs or total income Rs. 20 lakhs.

As my earnings from rental income 12.75 lakhs. So, am I required to charge GST @ 18% on my rent bill.

pls clarify.

satya (Executive Excise) (1839 Points)
Replied 24 June 2017

You have to consider your Total Income of both Rental & Trading.

1 Like

siddharath (1) (115 Points)
Replied 24 June 2017

If we can't have services from unregistered person then why government is making fool of us by giving the exception upto 20 lack

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 24 June 2017

Government want to track maximum number of transactions (GDP ratio) and tax as minimum as possible (rate wise), so they want to get all registered. But for those smaller traders they do not want to burden by legal complience, so their responsibility shifted on registered trader. Don't think the registered dealer gets to pay more..............No ....... not at all, He has to just pay what he was supposed to pay when purchased from registered dealer, at the same time, same amount of ITC is available in both cases ..................... Simply to say, helping hand to a member of family by little stronger one !!!

1 Like