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NRI - Rental property

karthick (Accountant) (104 Points)

30 November 2023

Question:
Commercial Rental property in India but Taxpayer outside India. Which GST registration apply? And which form Report Rental Income. Please reply expert team. Thanks in advance.

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CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 30 November 2023

in case of immovable property, the place of supply is location of property so in this case place of supply will be India. But registration requirement will not be there if on that PAN the total rental income does not exceed Rs 20 lakhs annually.

karthick (Accountant) (104 Points)
Replied 30 November 2023

Sir Thanks for reply. Rental Income exceed Rs.20 lakhs in a year. which category registration of GST?

Money Money (383 Points)
Replied 30 November 2023

A non-resident taxpayer who owns a commercial rental property in India but resides outside India needs to obtain a GST registration as a non-resident taxable person. A non-resident taxable person is defined as any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India1.

The non-resident taxpayer needs to follow the below steps to obtain a GST registration1:

Step 1: He or she needs to appoint an authorized signatory who is a resident of India and has a valid PAN.
Step 2: They should provide authorization to the authorized signatory in the form of a letter of authorization or a power of attorney.
Step 3: Apply for GST registration by accessing the GST portal2 and filling the form GST REG-09 at least five days prior to the commencement of business.
Step 4: He or she needs to pay the GST amount in advance based on the estimated turnover of the business for the period for which the registration is sought. The payment can be made online through the GST portal or through authorized banks.
The non-resident taxpayer also needs to report the rental income from the commercial property in India in the form GSTR-5, which is a monthly return for non-resident taxable persons. The return has to be filed within 20 days after the end of the month or within 7 days after the expiry of the registration, whichever is earlier. The return has to be filed electronically through the GST portal and has to be signed by the authorized signatory

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