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Gst on rental income

26 February 2019

I have a registered business and GST returns are filed for the same. I am also earning rental income. GST on rent is 18%. Should i get a new GSTIN for rental income or can i show the rental income also under my business GSTIN. The business and rental income are based in Chennai ie belong to the same state.

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15 Replies

Siva Shankar Reddy K (Associate Chartered Accountant Indirect Taxes ) (51 Points)
Replied 26 February 2019

Hi Harshit Badolla,

It is not necessary to take separate registration for rental income as per the GST Act(for proprietary business). For Pvt limited company if the property is in the name of the company then not required to take separate registration otherwise you need to take separate registration for rental income with your personal PAN if turnover exceeds the prescribed limits.

Thanks & Regards.

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Priya Kashyap (Student) (7053 Points)
Replied 26 February 2019

Rental income of a business comes under GST ki duniya, how?

pritesh (CA Final student) (7101 Points)
Replied 26 February 2019

You are getting rental income from residential property then that is excempted other wise it will be taxed @ 18%.

bo need to take separate registration.in same business by adding new sac code you can continue.

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 26 February 2019

Yes I would agree to that

Harshit Badolla (54 Points)
Replied 26 February 2019

Business turnover is above 20 lakhs. Rental income is below 20 lakhs. The property is in the name of the proprietor of the business and is let out for commercial purpose. So my doubt here is should GST be charged on rental income and should i take separate registration or file it with my business GSTIN?

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Harshit Badolla (54 Points)
Replied 26 February 2019

What is adding new SAC code mean? Where should i add?

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Priya Kashyap (Student) (7053 Points)
Replied 26 February 2019

turnover = taxable supplies + exempt supplies+ zero rated (export)

Siva Shankar Reddy K (Associate Chartered Accountant Indirect Taxes ) (51 Points)
Replied 26 February 2019

Let out for commercial purpose is taxable @ 18%. SAC means "Service Accounting Code"

You can charge GST with existing GSTIN if the PAN number of proprietary and the business is the same. If both PAN numbers are different then no need to pay GST on rental income since your turnover is less than 20 lakhs

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 26 February 2019

Hi harshit,

Sac is to be updated in your gst profile in core ammendment field on gstn portal

Kindly reach out to us for further help

HAPPY TO HELP

MOHIT JAGNANI
8820448170

Priya Kashyap (Student) (7053 Points)
Replied 26 February 2019

Can someone put any link for understanding the concept for this query .

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Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 26 February 2019

Kindly read section 25 (2) of CGST ACT, 2017, along with amendments

HAPPY TO HELP

MOHIT JAGNANI

pritesh (CA Final student) (7101 Points)
Replied 26 February 2019

@ harshit

you can file with same gstn by updating sac code in gst registration.

if you want you can take separate registration also.

subhagan sreerangam (7040 Points)
Replied 26 February 2019

thank you and congratulations

Sameer Narain (2 Points)
Replied 01 September 2019

I have rental income of Rs 320000 p.a from residential flat used for residential use and Rs 486000 p.a from commercial office. I also have professional income of Rs 1100000p.a. 1) Do I require to pay GST on above income? 2)My professional income is expected to increase to 1900000 and rental income will be same as menrtioned above. Do I have to pay GST on above income. Sameer Narain