Taxability of pagadi system

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404 Points Posted on 27 April 2020
How is the tax collection done in case of levy of GST in pagadi system transaction ?
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On 27 April 2020 at 16:19 Report
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Quick Summary
The Pagadi system, specifically concerning commercial properties, is subject to GST. When tenancy rights are transferred for a consideration, the seller is responsible for collecting and depositing GST with the government. The original landlord is not involved in this tax transaction.

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CA-Final Students
192 Points Posted on 27 April 2020
Refer circular no 44/18/2018 CGST dated 02.05.2018
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On 27 April 2020 at 17:47
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GST Practitioner
55067 Points Posted on 27 April 2020
The consideration received for the transfer of tenancy right (paggdi) is taxable under GST.

Note : Shall be commercial property only
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On 27 April 2020 at 21:00
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404 Points Posted on 27 April 2020
So the person who sells this place will collect from him (GST) on the consideration received to vacate the place..and deposit to government...The original landlord has nothing to do in this transaction..Is this the thing?
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On 27 April 2020 at 21:03
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GST Practitioner
55067 Points Posted on 28 April 2020
Yes correct 👍
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On 28 April 2020 at 13:10

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