Clarification on GST on Commercial property (Renting Income) – What to charge (CGST/SGST or IGST) in case of renting services

Clarification on GST on Commercial property (Renting Income) – What to charge (CGST/SGST or IGST) in case of renting services

Presentation 

A ton of citizens are confronting issues over GST on leasing of business property. To clear all the equivocalness over this issue, we should clarify the idea with down to earth case. 

In any case, on the off chance that after this article, there is still any inquiry left, at that point you can keep in touch with us at info@hubco.in. 

GST on leasing of Commercial property 

Under GST, leasing of business property is assessable and not excluded under GST. Henceforth, let us comprehend what to charge and how to accuse of the assistance of down to earth illustration. 

#Case No.1: Single Property rental wage under 20 Lakh 

A man living in Delhi have a business property in Haryana and getting a lease of Rs.30,000/ - every month or say Rs.3,60,000/ - yearly. 

Arrangement: according to GST rules, if there should be an occurrence of enduring property, the place of supply might be the address of the steady property. In this way, despite the fact that the individual owning the property is situated in Delhi, the place of supply should dependably be where property is arranged. 

Further, the supply of administrations might likewise occur where the relentless property is arranged. Thus, the accompanying exchange should happens: 

Taxability: Taxable 

Exclusion: Yes, since add up to receipts are under Rs.20 Lakh. 

Place of Supply: Haryana 

Enrollment: Not required 

#Case No.2: Single Property rental pay is more than 20 Lakh 

A man living in Delhi have a business property in Haryana and getting a lease of Rs.3,00,000/ - every month/Rs.36,00,000/ - yearly. 

Arrangement: As clarified above, since the supply is occurring from where the property is arranged, area of the proprietor of the property is unimportant. 

Consequently, the accompanying exchange might happens: 

Taxability: Taxable 

Exception: No, since add up to receipts are more than Rs.20 lakh 

Place of Supply: Haryana 

Enlistment: Required from Haryana on the address where property is arranged. 

Assessment receipt: Yes, receipt should be raised every month. 

What to charge: CGST and SGST might be charged since it is the situation of neighborhood supply. 

#Case No.3: Muliple Property having singular rental wage under 20 Lakh. 

A man living in Delhi have a business property in Haryana and getting a lease of Rs.125,000/ - every month and a business property in Noida (UP) at month to month lease of Rs.100,000/ - every month. 

Arrangement: This is an extraordinary case, where the proprietor has two properties and independently their rental salary is not as much as essential exception confine yet on the whole, it is more than as far as possible. 

According to GST law, we have to see the essential exception constrain on Pan India premise and not on singular premise. This is on the grounds that however we have two properties yet these are claimed by a solitary individual and exclusion is kept an eye on single PAN premise. 

Thus, the accompanying exchange should happens: 

Taxability: Taxable 

Exclusion: No, since add up to receipts are more than Rs.20 lakh 

Place of Supply: Haryana 

Enrollment: Required from Haryana and Uttar Pradesh 

Duty receipt: Yes, receipt should be raised every month. 

What to charge: CGST and SGST should be charged since it is the situation of neighborhood supply.


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