HOUSE+GALA RENT INCOME MORE THAN 20 Lakhs, WHETHER GST REGISTRATION IS REQUIRED ?

Hi Friends/Seniors,

One of my client is having Rent Income from Flats+Gala which is above 20 Lakhs yearly.

Further, he is broker in Food Grains & Pulses in APMC Market Vashi from which he gets near about 50-60 Lakhs yearly.

My view is he should get registered for GST.

Whether he is required to get registered in GST Act & From which date ?

Thanks & regards 

 

 

Replies (4)
Quick Summary
If your client's combined rent and brokerage income surpasses £20 lakhs annually, GST registration is mandatory. This includes all taxable and exempt supplies. Registration should occur within 30 days of exceeding the threshold, though voluntary registration is advised sooner to avoid penalties.

Yes.

From the date he exceeds 20 lakhs turnover.

Total Turnover means Rent + Brokerage ? 

Or only Rent.

 

T & R

Rent + Brokerage + any other supply in aggregate....  

Your client's situation involves both rent income and brokerage income.

To determine if your client needs to register for GST, let's break down the income sources: Rent Income: -

*Exemption threshold*: Rent income is exempt from GST up to ₹20 lakhs per annum (Section 23 of the CGST Act, 2017). -

 *Your client's situation*: Since your client's rent income exceeds ₹20 lakhs (₹20 lakhs +), they are not exempt from GST registration solely based on rent income. Brokerage Income:

- *GST applicability*: Brokerage services are taxable under GST (Entry 9, Schedule II of the CGST Act, 2017). - *Threshold limit: The threshold limit for GST registration for services, including brokerage, is ₹20 lakhs for normal category states (Section 22 of the CGST Act, 2017) and ₹10 lakhs for special category states (Section 22 of the CGST Act, 2017). -

Your client's situation*: Since your client's brokerage income exceeds ₹20 lakhs, they are required to register for GST. Aggregate Turnover: -

 *Aggregate turnover concept*: The aggregate turnover includes the total value of all taxable and exempt supplies, exports, and interstate supplies (Section 2(6) of the CGST Act, 2017). - *Your client's situation*: Your client's aggregate turnover (rent income + brokerage income) exceeds the threshold limit, making them liable for GST registration. Registration Date: -

 *Voluntary registration*: Your client can opt for voluntary registration, which can be done at any time. - *Mandatory registration*: If your client's aggregate turnover exceeds the threshold limit, they must register for GST within 30 days from the date they crossed the threshold limit. In your client's case, since their aggregate turnover exceeds the threshold limit, they are required to register for GST. The registration date would be within 30 days from the date they crossed the threshold limit.

However, it's recommended that your client registers voluntarily as soon as possible to avoid any potential penalties or interest.

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