Question ID :
37979
GST on Notional Income
A GST registered person gives away commercial space to a trader by taking quite a large amount as refundable deposit. The understanding is the trader will use the space for business purpose for a period of 7 years without payment of any rent, after expiry of 7 years he has to surrender the place back to the Landlord who will return the large deposit received.
As per Income Tax Law the landlord has to pay Income tax on the notional rental income in respect of above arrangement.
I would like to know GST implication on the Land lord in the above circumstance.
Posted by
Ethirajan
on
Feb 14, 2019
Filed Under
GST
I my professional view the notional rent as per the provisions of the Income Tax Act,1961 is subject to GST. As the Income Tax Act, 1961 has defined a sound basis for determination of rental. So the rental as per the Income Tax Act,1961 is a sound base for charging GST.
Posted by
CA. JHA SHANKAR KUMAR on
Feb 14, 2019