GST on Rent Recd by person dealing in Tax Free Goods

[R.P. GUpta]

5 Lakh Rent recd in Advance in April by the Proprietor dealing only in EXEMPT goods turnover more than say 10 cr.

???
1. As I have made a single invoice for the whole year in April Iteself. Will GST be applicable on me. At present Service tax is not applicable. I have no other taxable service.

2. If GST is applicable in case 1 Can I show this rent meant for only April to June as GST is applicable from 1 July. Will GST be still applicable.

[KASTURI SETHI]

Dear Querist,. You have used the word 'RENT' and at the same time you say no service tax is applicable. Elaborate the word, 'rent'. Rent against movable property or immovable property ? It is possible that you may be using the word, 'rent' wrongly. Pl clarify you query emphasing the word rent.

[R.P. GUpta]

Sir Rent is Lease rent for immovable residential property which is received in advance in month of April for yearly basis.

[KASTURI SETHI]

Advance received against exempted goods and services is not taxable under GST Act.

AI Summary

GST on advance rent: advance receipts for exempt supplies are not taxable under GST for lease of residential immovable property.
Advance receipts that relate to exempt supplies are not subject to GST; an advance received against an exempt supply-here, lease rent for immovable residential property by a person dealing only in exempt goods-is outside the levy of GST under the Act.