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Whether gst is to be paid on unrealized rent

1466 views 5 replies

VEMULA NAGARAJU

Chartered Accountant

138 Points Joined October 2014

One of my client let out the promises for commercial purpose in May 2018, just received rent for 2 months and tenant not paid later due to financial crisis, although tenant paid rent for 2 months for May 2018 and June 2018, our client paid GST till September, 2018 and from October 2018, filed NIL returns, also not issued tax Invoices from October, 2019. Further, sent a lawyer notice to tenant, now I would like to know, whether filing of NIL is correct as rent is not received. Since, GST is on accrual basis.

Can anyone clarify me this

Replies (5)

pritesh

CA Final student

7106 Points Joined April 2018

According to me if property is vacant then no need ti charges gst..

please confirm from others

g mahesh Mundra

Business and tax consultant

3299 Points Joined September 2017

if you have not raised gst rent bill then no need

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

In GST there is no concept of receipt basis and if there is no rent agreement also invoice is not issued then you may treat as a vacant property. No GST is to be charged.

VEMULA NAGARAJU

Chartered Accountant

138 Points Joined October 2014

Premises is occupied by the tenant and tenant is not paying saying as financial crisis, already lawyer notice is sent and legal action is in the process for recovery.

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

if you are claiming in legal notice, full amount of rent then you should report full amount of Income under GST also pay the GST liability on the same.

it is hardship for the landlord but for safer approach you can follow.

Since there is no clarification from department in this issue.