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Gst on rent

18 April 2020

If discount is given by landlord for rent .. on what amount gst needs to be charged . Any relevant provisions !

Rent 1 lakh but now they are charging only 50000.. gst in what amount and what is the relevant provision in act.

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6 Replies

Varad Satyakumar Rathi (student) (24 Points)
Replied 18 April 2020

GST will be charged on 15000
reference- 15(1) of CGST Act states that the transaction value is the assesable value.

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Shivam RC (Student) (23683 Points)
Replied 18 April 2020

I guess it's a Commercial Property.

GST @ 18% would be applicable on Rs. 50,000/-
Refer Valuation Provision of Section 15 of the CGST Act 2017. As per the Provision of Section 15(3) clause (a) of the CGST Act 2017, Discount given by the Supplier and duely recorded in the Tax Invoice does not forms part of the TRANSACTION VALUE.

Hence GST on Rs. 50,000/- would be applicable.

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Varad Satyakumar Rathi (student) (24 Points)
Replied 18 April 2020

Was the discount agreed upon previously?

suraj pahuja (TAX PRACTITIONER) (178 Points)
Replied 18 April 2020

GST WILL BE CHARGED ON 50,000 ( 1LAKH -50,000) @ 18% = 9,000/-

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Durga Prasad (97 Points)
Replied 18 April 2020

For the first time the land lord giving discount

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suraj pahuja (TAX PRACTITIONER) (178 Points)
Replied 18 April 2020

whataver the case may be gst is charged on the amount of service, here amount of service is 50,000 for particular month in that case the discounted price will be eligible for calculating gst

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