Proprietor gst on commercial rent received

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Amit Rakhecha

1 Points Joined September 2017

Hello,

We are three friends and two of us run a proprietor concerns and other is a partner in a firm..

We joint hold an commercial property and rent for same is receivedin 3 different names.. proportionately..

Both the sole proprietor having business turnover greater than 50 Lakh is registered with GST. Our normal course of business involves supplies of goods. The property fetches us commercial rental income of 100,000 monthly (i.e. 12,00,000 annual) induviduvupdate..

As per normal practice, TDS is deducted. Does the proprietor have to raise a GST invoice and charge GST 18% on the rent being received in this case ? And file return under his normal GST returns along with his business returns clubbed WTH rental ..

Also does the partner have to make a new GST registration for his individual capacity and also file that return as an individual

Replies (8)

Arpan Jain

Experienced GST Consultant at G. M. Kapa

36 Points Joined November 2015

Question not properly formulated. I wil answer with whatever I have understood.

If TDS is deducted separately for all, then invoice is to be raised separately too.

The return is to be filed for all the entities with same PAN hence, return will depend on whether you have single PAN or multipe PAN for your business( in case of company etc.) and you

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

The property is three individuals name also the three persons run a business under GST...
So, all three give GST bill to tenants as your proprietorship firm name or your individual name but use the income to individual names...

The rental income not to any partnership firm....

Vinay Garg

Student cum businessman cum professional

859 Points Joined June 2017

1). Both the proprietors have to raise TAX INVOICE and charge GS% @ 18% on the rent.

2). Both the proprietors have to show their rental income alongwith normal business income.

3). If the partner's total Supply in individual capacity exceeds threshold limit i.e.20 lakh, he needs to get himself registered under GST in his individual capacity. Otherwise, partner will issue Invoice to the tenant without charging GST and RCM will apply on Tenant.

anshul aggarwal

Consultant

1074 Points Joined October 2011

Also this rental income has to filed under GSTR reports for both proprietors and partner if registered.

MANGOL

ACCOUNTS MANAGER

25 Points Joined April 2011

Originally posted by : Vinay Garg
	1). Both the proprietors have to raise TAX INVOICE and charge GS% @ 18% on the rent.2). Both the proprietors have to show their rental income alongwith normal business income.3). If the partner's total Supply in individual capacity exceeds threshold limit i.e.20 lakh, he needs to get himself registered under GST in his individual capacity. Otherwise, partner will issue Invoice to the tenant without charging GST and RCM will apply on Tenant.

CA Shivam Arora

Chartered Accountant

2414 Points Joined November 2016

3 friends here will be treated as body of individuals(BOI). As per GST law BOI is a person. Thus a person whose turnover exceeds 20lakhs/10lakhs (as the case may be) is required to register under GST law. 3 friends are required to get themselves registered as BOI under GST law and charge GST thereof in rent billing @ 18%. This is as per my opinion.

dharmendra sethia

consultant

22 Points Joined September 2017

Sir

I one of my client is the proprietor of a conern having registered in GST he also receiving rent on his personal name whether he will liable to pay gst on rent or it will be exempted ?