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Rent Received from Indivudual

Murugesan (Asst. Manager - Finance) (180 Points)

27 July 2017

company X is a Private Limited for which the core business is Others. They are having own flats and providing the same for Rent. Pls confirm is the company liable to pay the GST under Reverse Charge or not? If yes shall it avail ITC.

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Ahmed Ali (388 Points)
Replied 27 July 2017

So, you are engaged in renting of immovable property.

If you provide those flats as residential dwelling for use as residence, then you are exempted. No need to charge GST.

But if it is for commercial purpose, then you have to charge GST on the rent .

Question of reverse charge arises only in case of expenses. In this case rent is your Income, so no possibility of reverse charge.

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