Mr. X have a GST registration for his distribution business. He have a commercial building which have given for rent to Mr Y.
Following are my doubts.
1. Whether he have to collect GST from tenant??
2. Rent amount received will be taxable under the head income from house property. Then how we will adjust this rent difference at the time of filing of GSTR9 C.
1). Yes you have to collect GST @ 18% from the tenant since it is a Commercial Property. Under the GST Law, Rental Income received from letting out Residential House Property for Residential purpose is Exempted from GST vide Notification No. 12/2017 - Central Tax, dated 27th June 2020. However Rent from Commercial Property is Taxable under GST.
Therefore you have to collect GST @ 18% from your tenant since you are a GST Registered Person.
GST Rate : 18%
SAC CODE : 997212
DESCRIPTION : Rental or leasing Services involving own or leased Non-Residential Property.
2). Under the Income Tax Act 1961, in you ITR, the Rental Income will be taxable under the head "INCOME FROM HOUSE PROPERTY."
Regards,
Shivam RC.
CAclubindia
