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GST on building

venkateswara reddy gudemupati (33 Points)

13 October 2020

Whether GST is payable on the rents received on a building given on rent to a Government department?

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7 Replies

Shivam RC (Student) (23683 Points)
Replied 13 October 2020

Yes GST would be applicable if the landlord is registered under GST or the total Rental Income exceeds Rs. 20 lakhs. Moreover the Government Department is required to deduct TDS @ 2% ( 1% CGST and 1% SGST ) under Section 51 of the CGST Act 2017 from the Rent payable if the aggregate value of the rent exceeds Rs. 2,50,000.

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venkateswara reddy gudemupati (33 Points)
Replied 13 October 2020

Here the Rental income exceeds 20 lakhs

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 14 October 2020

Yes GST Applicable & In term of Section 22 of CGST Act landlord is required to obtain Registration if his aggregate turnover exceeds 20 Lacs per annum.

Shivam RC (Student) (23683 Points)
Replied 14 October 2020

Yes @ Venkateswara Sir. You have to take GST Registration since you have crossed the threshold limit of Rs. 20 lakhs and the same was also mentioned by me in my previous reply.

Also the Government Department will pay the Rent after deducting GST TDS @ 2% U/s 51 of the CGST Act 2017 since the aggregate rent exceeds Rs. 2.5 lakhs.