Rent In GST land in case petrol pump owner

Dear Mr. Puneet,

Renting of land to petrol pump amounts to Supply under GST under the classification of "renting of immovable property" and liable for 18% GST.

Hence your client needs to give tax invoice as explained above. Any non compliance in this regard will attract Rs. 25,000/- general penalty.

Hope it clarifies your doubt.   

 

 

CA Subba Reddy Bonam Sir said it well and let me make an addition for a clarification, in question he had asked whether his client has to pay the GST on rent collected from Petrol Pump Company, Since there needs some clarification let me clear one issue here, GST at 18% will be applicable only if the total collected rent of your Client exceeds 20 Lakhs Per annum (All total, if he have any such other places), and in this case your client must issue a Valid Tax Invoice to the company and collect GST from company separately above the rent charged and pay to the Government.

I hope that this may help you.

Thanks sir, for such clarification but i need some more that my client having gst number and having turnover above 5cr (1 lkah of oil 18% & other is related to petrol ) so in such case got rent from company is total of 210000 in f.y . so need to pay gst on that rent or not as collected rent from that is below then 20 lakhs per annum and also i am doing audit in gst. and if not then should i add that rent amount in turnover or not.

Your question is incomplete to some extend, but may i ask you that whether there is GST on petrol ? As of now petrol is out of the purview of GST and not liable to GST, it has Central and State taxes.

May I know that who is doing the business ? Whether Your client is purchasing fuels from the oil company and selling it ? and in addition he gets separate rental income on the land of that petrol pump ?

or whether he only owns the land and business is done by others or company directly ?

Sir, my client is also dealing in oil sale and purchase with petrol . no business is also done by him.

Petrol is not taxable under GST

Sir, i know that petrol is not cover in gst but my client is having gst number on his own pen and the land is also registered on his pen number
a.d i also know that li.it of service in gst is 20 lakhs but what your service is below then 20 lakh per annum and you are having gst number then you should lible to pay gst on that service if it is below then 20 lakh in whole year.

Yes, if we took voluntary registration ( without looking the turnover limit or any other provisions) then, we shall pay GST on the amount we sale (ie, Turnover) irrespective of whether the Turnover of a F.Y is below or above the prescribed limit of Rs.20 Lakh P.A.

Example - If you have registered under GST and you had a sale of Rs.1 lakh per month which totals upto Rs.12 Lakh only in a year, but you should collect the GST on the Goods or Services made and pay to Government. Once you took registration then you are liable to collect and pay tax until you cancel the registration. And please note that you can claim the eligible ITC also.

I hope that this would help you.

So should my client is liable to pay gst on rent collected from company and need to clear one more think that the company is dealing with this things on daily basis how would that ignor that matter is such a big company is doing wrong in gst that they also not claimg the itc on rent also and not telling the owner to give then rent bill.

shoud my client have to pay gst on rent or not.?

Company can claim ITC only when the company receives Valid Tax invoice and Reflects in GSTR 2B,

May i know whether your client collects rent from the company including GST amount and whether the company knows that your client is charging GST on rent ?

If your client have collected GST from company then you shall deposit it to Govt.

No we are not giving tax invoice of that rent to company and also company is not asking for any kind of tax invoice they are transfer the rent per month directly to the bank a/c

In this case the company may not be aware of your clients GST liability, it is your clients liability to raise a GST compliant tax invoice and present to the company on receiving rent and that invoice should separately show the tax amount.

Ohk sir