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gst on rent

12 December 2017

My tenant refuses to pay gst, because the lease deed signed 20 years ago said “ rent inclusive of all taxes”.But by some misunderstanding , they paid for July and August. Can they stop ? I am sending bills regularly. They are not refusing to pay in writing. I not receiving any rent also.Please advise.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168019 Points)
Replied 12 December 2017

Well, as such as per the clause referred to lease deed, you cannot demand any additional tax, including GST. But check any other clause which may be in your favour....... as the lease deed is already 20 years old, and also any such inevitable changes could been taken care of.

Secondly, you can negotiate with your leasee about the ITC available for the GST paid, (provided he is registered under regular scheme), and as such nothing has to be paid by him from his own pocket.

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Naveen Khanna (73 Points)
Replied 24 December 2017

They understand that if they pay GST over and above the rent and then claim it as ITC , nothing goes out of there pocket.In fact they want me to submit bill after extracting GST out of the rent .