Gst applicability

This query is : Resolved

SANTHOSH KURIAN (Querist)
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03 April 2018 Sir,
A building property is having 20 tenants. The municipal corporation is charging Property tax via a single bill to the Property Owner against which he makes the payment. The property tax is then divided among the tenants and recovered from them by issuing invoices by the property owner to the tenants. This arrangement is made as per the rental agreements. Whether such recovery treat as a consideration paid for the use of premises as in the nature of Rent and attract GST? or such recovery is exempted from GST? If exempted under what legal circumstances it is exempted?

Please solve the query, Thank you,

SANTHOSH C K

CA Suresh Jain

CA Suresh Jain (Expert)
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03 April 2018 The payment of property tax is the liability of the owner and not of tenant. The amount collected from Tenant on account of apportionment of the property tax amount is nothing but an additional rent and is liable for GST