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Taxable value for gst on renting of immovable property

Ritesh (Professional) (291 Points)

23 August 2018

We are local authority. We have some community halls and auditorium. We give them on rent. We collect rent, fixed amount of electricity charges and fixed amount of cleaning and other charges approved by our authority (for example Rs.10000 rent + Rs.1000 electricty + Rs.500 cleaning and other charges = Total Rs.11500/-). My question is what will be the value for the purpose of GST for services of "Renting of immovable property?

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7 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 24 August 2018

As per Notification 3/2018 CT (R)

Services supplied by the Central Government, State
Government, Union territory or local authority by way of
renting of immovable property to a person registered
under the Central Goods and Services Tax Act is cover under the RCM
Hence the registered person availing such services is liable deposit gst by doing RCM

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Ritesh (Professional) (291 Points)
Replied 24 August 2018

Thanks for your concern. We are following the same. However, majority of our beneficiaries not have GST number and hence, we need to collect and pay. Hope I'm clear. Still value for the purpose of charge of GST is to be a question.

Vignesh (Finance executive) (256 Points)
Replied 24 August 2018

Once taxability comes under RCM there is no need to collect tax from receipent whether he is registered person or unregistered person.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 25 August 2018

Yes you are coreect if You are supplying same to URD , No GST is Leviable .

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Ritesh (Professional) (291 Points)
Replied 05 September 2018

Notification issued for Renting of immovable property by local authority to be covered under RCM specifically mentions only registered person. Hence, we need to collect and deposit.

Hope I'm clear. Still value for the purpose of charge of GST is to be a question.

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Vignesh (Finance executive) (256 Points)
Replied 05 September 2018

RCM complience is for receipent of the supply.when your are a local authority and providing service to another person so you are supplier.as a supplier you are not liable to collect GST.

Ritesh (Professional) (291 Points)
Replied 10 September 2018

Whether we need to collect and deposit or receiver need to deposit directly to government is altogether another question. For any supply I need to issue tax invoice with / without GST. For that purpose, what would be the value?