Question ID :
40640
GST-RENT COLLECTED FROM CLINIC
Sir,
A person is collecting rent and GST from various shops in his commercial complex. One of the place being let out to a doctor for running his clinic. The Doctor says since he is doing exempted Health car service, GST should not be collected from him. Is it correct ?
Posted by
N.NAGARAJAN
on
Apr 30, 2020
Filed Under
INDIRECT TAXES
The Doctor's view is wrong. In other words, landlord has to collect 18% GST.
Posted by
B.CHACKRAPANI WARRIER on
Apr 30, 2020
Answer ID :
80497
No, it is not correct
Posted by
CA. SATISH CHAND GARG on
May 01, 2020
Answer ID :
80498
The service here supplied is "Renting a property" not "health care service" and the property is provided to a business which also covers professionals, hence GST will be applicable. However if the total rent collected by the Property owner, including turnover from any other business is less than 20 Lakh, then GST need not to be charged and collected.
Also, GST is not applicable, if residential property is let out for residential purpose.
Posted by
CA Yogesh Kumar on
May 02, 2020
Answer ID :
80500
GST on Rent of Let out property to a business is applicable at the rate of 18%. In this case service is "Letting out of the Property" and not the "Health care". Hence Doctor need to pay GST.
However if the total aggregate turn over of the property owner is less than 20 lakh, or
Residential property is let out for the purpose of residence, then GST not applicable.
Posted by
CA Yogesh Kumar on
May 02, 2020
Answer ID :
80503
To explain this further , if the doctor pays his phone bill he pays GST on it also. Similarly renting of immovable property is just another taxable service and he will have to pay it.
The GST amount paid by the doctor will be an expense for him as he will not be able to take any credit.
Posted by
VIDIT SETH on
May 05, 2020
Answer ID :
80509
Renting of Immovable property for other than residential dwelling for residential purpose is taxable.
therefore, in your case too it is taxable.
Posted by
YAMAN GARG on
May 07, 2020
Answer ID :
80518
No. Doctor has not provided services, he has received services from landlord for renting of shops. In this case supplier of services, i.e. landlord can collect GST from Doctor.
Posted by
CA. chunauti dholakia on
May 08, 2020