Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Gst on property tax paid

B.ANIL REDDY (Student) (78 Points)

02 March 2018

Dear Professionals,

if a GST Registered person providing Rental services and raising Tax Invoice, and if he includes the amount of Property tax paid by Him(Owner)., whether GST should calculated on that Prpoerty tax Portion.

Can Anyone suggest me in this Regard.

Thanking You..,

Reply
Follow
Share

5 Replies

(Guest)

Yes.

Upgrade to CAclubindia Pro. Subscribe Now!

B.ANIL REDDY (Student) (78 Points)
Replied 02 March 2018

Dear manish ji,

Can you Explain the reason or any provision relating to It.

pankaj (a) (1262 Points)
Replied 02 March 2018

as per sec. 15(2)(a) of cgst act, 2017 every tax, cess, penalty will be included in assesable value other than cgst, sgst, it gst and compensation cess.
hence property tax will form part of rent value and gst will be charged on total value including property tax.

Vinayak Hegde (CA) (154 Points)
Replied 02 March 2018

In GST there is no concept of reimbursement of expenses. Hence you have to include the smae while calculating considerationa and GST will be levied on full amount.

(Guest)

Originally posted by : B.ANIL REDDY
	Dear manish ji, Can you Explain the reason or any provision relating to It.

Transaction value is price actually paid or payable [section 15].

Property tax is not an indirect tax. You may recover it by enhancing your rent equally. But it doesn't change the nature of amount, which stays rent only.