01 June 2023
I have a house and give it to OYO. OYO books for me and pays me after its commission. In my GST return should I pay GST on the net amount. Please help me
27 July 2024
When you provide a property to OYO for booking and receive payment after OYO deducts its commission, the GST treatment involves several considerations. Here's a detailed explanation of how GST applies in this scenario:
### **1. Nature of the Transaction**
**Providing Property to OYO:** - **Nature of Supply:** When you give your house to OYO, it is considered a supply of services. OYO acts as an intermediary or aggregator that books rooms on your behalf and pays you the net amount after deducting its commission.
### **2. GST Implications**
**A. GST on Rental Income:**
- **Rental for Residential Property:** Rental income from the lease of residential property is generally exempt from GST, as per Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, if it is used for residential purposes.
- **Rental for Commercial Property:** If the property is rented for commercial purposes, it may be subject to GST at 18% (9% CGST + 9% SGST) under Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017.
**B. GST on Commission Received by OYO:**
- **Commission to OYO:** OYO’s commission is considered a supply of service by OYO, and OYO would be responsible for charging GST on their commission. Typically, this is at 18% GST under the category of "Supply of Service" or "Intermediary Service."
### **3. Reporting in GST Return**
**A. Income Reporting:**
- **Net Amount Received:** You should report the net amount received from OYO in your GST return. This amount is typically the gross rental income less OYO’s commission.
- **Exempted Income:** If the property is used for residential purposes and the rental income is exempt under GST, you should still report the rental income in your GST return. The rental income will be shown as exempted income.
**B. GST Payment:**
- **GST Liability:** Since the rental income is exempt (if used for residential purposes), you will not have to pay GST on the rental income received. However, ensure that any commercial property rental income is appropriately subjected to GST.
### **4. Practical Steps**
1. **Determine Property Use:** Confirm whether the property is used for residential or commercial purposes. 2. **Report Rental Income:** Report the rental income received from OYO as exempt income in your GST return if it is used for residential purposes. 3. **OYO’s GST:** OYO will charge GST on their commission, and you do not need to account for GST on the commission amount received from OYO. 4. **Consult a Tax Professional:** For accurate compliance and reporting, consult a GST professional or tax advisor, especially if there are complexities or changes in the nature of property usage.
### **Summary**
- **Residential Property:** Rental income from residential property is exempt from GST. Report it as exempt income in your GST return. - **Commercial Property:** If the property is commercial, GST at 18% is applicable. - **OYO’s Commission:** OYO will handle GST on their commission. You are not responsible for paying GST on the commission amount.
By following these guidelines, you can ensure proper GST reporting and compliance for your rental income through OYO.
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