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GST - Rental Income

08 May 2021

A person let out his property for commercial purpose and getting Annual rental income for FY 2019-20 is 26,00,000/- then due to pandemic Tenant and Owner revise the agreement for Rs.12,00,000/- p.a in this case GST is Applicable?

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 08 May 2021

If the lessor is already not registered under GST, then GST is not applicable on rental income if the actual receipt too is limited to ₹12 lacs, provided the lessor has no other income or has other income within the threshold limit of turnover under GST.

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manikanta juluri (student) (47 Points)
Replied 08 May 2021

Lessor has GSTN and filing returns every month

CMA Poornima Madhava (CMA) (13112 Points)
Replied 08 May 2021

In that case, GST is applicable.

manikanta juluri (student) (47 Points)
Replied 08 May 2021

But tenant paying only rent not paying GST, in this case how can we proceed?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 08 May 2021

If you have issued invoice with GST, then the tenant is obligated to pay GST too. Also check the revised agreement if the GST clause is also included in it.