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commercial rent

31 December 2018

A person has a turnover more than 30 lakh per year, due to GST exempt service. He is showing an income of Rs 1 lakh per year in ITR from commercial rent from his wife and father. Does he need to take a GST number and file monthly returns. What if he doesn't. Can he skip showing commercial rent income in ITR next year. can this lead to clubbing of income.

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 December 2018

First of the rental income is not Assessee's income then no need to show it anywhere...

If he showed it as his income then GST (registration) is applicable as per ITR...

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Vikas (CA) (1135 Points)
Replied 31 December 2018

Since, the aggregate turnover during the year exceeds Rs.20 lakhs, the person should obtain registration, pay GST on taxable supplies and file returns accordingly. Secondly, as the rent is being collected from a related person, then the valuation of rent could be questioned by the authorities (in comparison with open market value) if the credit of GST charged by such person is not eligible to the father or wife.