Chhalani and Associates (CA - www.cachhalani.com) (142 Points)
13 March 2023X has given his shop on rent to Y for wine shop business. Y is exempt from GST (liquor sale) and has not taken GST registration. Is X supposed to recover GST from Y? At what percentage? How can Y claim refund of this GST as he is exempt.
CA Sorav Gupta
(Chartered Accountant)
(1005 Points)
Replied 13 March 2023
Yes, if the property's rent is more than Rs. 20 lacs in a financial year or the owner is registered or liable for registration under GST then the GST has to be charged on the rent. GST shall be charged at @ 18%.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
Bhagwat Singh
(37 Points)
Replied 13 March 2023
CAclubindia
