My client having construction business total constructed Flats 13. His share is 8 Flats, landlord share is5 flats, my client paid 8 flats GST but landlord share not paid how to declare land lord share in GSTR-01 (Do landlord share GST to be paid in RCM ?) .
To declare the landlord's share in GSTR-1 and determine GST payment:
GST on Landlord's Share - The landlord's share of 5 flats is considered a supply of service (construction service) by your client to the landlord. -
Your client has paid GST on their share of 8 flats but not on the landlord's share.
Reverse Charge Mechanism (RCM) - As per GST laws, the landlord is liable to pay GST under RCM on the construction services received from your client. -
Your client does not need to charge GST on the landlord's share, but the landlord needs to pay GST on the value of the construction services received.
Declaration in GSTR-1 - Your client should report the total taxable value of the construction services provided, including the landlord's share, in GSTR-1.
- Your client should declare the GST paid on their share of 8 flats and not charge GST on the landlord's share. Landlord's GST Payment
- The landlord needs to pay GST on the value of the construction services received (5 flats) under RCM. -
The landlord will report this in their GSTR-3B return and pay the applicable GST amount.
Additional Considerations - Ensure that your client and the landlord maintain proper records and documentation of the transaction, including the agreement and payment details. -
Your client should issue a tax invoice for their share of 8 flats and a separate document (e.g., a memo or statement) for the landlord's share, indicating the value of the construction services provided without GST . By following these steps, your client can correctly declare the landlord's share in GSTR-1, and the landlord can pay GST under RCM.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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