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Question ID : 34804

GST APPILCABILITY ON RENT

Dealer is registered for trading in building material his turnover for that business is 62 lakh . he is also earning income from house property by way of renting of immovable property of rs. 5 lak per year. wheather gst is applicable on renting of iimovable property to bank income of which is considered in income from house property

Posted by NADIR D SHAIKH on Sep 13, 2018

Filed Under INDIRECT TAXES

Answer ID : 73954

Yes. GST is applicable on the rent received from the bank as the property is being used for commercial purpose. As far Income tax is concerned, rentall income can be continued to be shown under House Property

Posted by Sai Ram on Sep 15, 2018
Answer ID : 73958

Once TO crossed 20 lacs, then registration compulsory. Once registered all business-like activities attract tax payment. Head of income under income-tax does not affect taxability in GST. GST is applicable on all taxable activity. In present case, trading is taxable activity and renting of immovable property which is not for residential purpose (as given for use as bank) also is taxable activity. Please recheck is immovable property which is let out to bank is used by bank as residential dwelling or non-residential dwelling purposes before admitting tax on the same. Use of residential dwelling for residential purposes (even by commercial occupant) is exempt from GST (sl.no.12 of 12/2017-CT(R) notification).

Posted by CA. JATIN CHRISTOPHER A on Sep 17, 2018