RENTAL INCOME

[Deepak Garg]

Sir, I am a registered person having GSTIN and receiving rental income from BANK, Whether I am liable to pay GST on rental income or not. Please let me know whether I am liable to submit bill to the bank (under primary liability and charge GST) on other hand what will be status if BANK pay GST under RCM.

[KASTURI SETHI]

You are liable to pay GST on rental income if you cross threshold exemption. Renting is not under RCM.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

[Subodh Modak]

Sir,

A different question. I was having vat no and now gst no. I hv taxable turnover in trading activity. Also having rental income from commercial property which is less than 5 lakhs per year. I am the proprietor of trading business.

Do I need to charge gst now on rental income?

Is excees credit of trading activity can be Set off aganist tax charged on rental?

Subodh Modak

[DR.MARIAPPAN GOVINDARAJAN]

Yes, you have to charge GST on rental income. GST registration is common for goods and services. It is supply of services or goods or both. If your aggregate turnover in all your activities exceeds ₹ 20 lakhs per year you have to charge GST and pay to the credit of the respective Government.

[Ganeshan Kalyani]

You have mentioned that your turnover is less than the threshold limit. Hence you are not liable to register under GST. Bank has to pay GST under reverse charge.

AI Summary

GST liability on rental income depends on aggregate turnover; unregistered suppliers can have tax payable under reverse charge. A registered person must charge GST on rental income if aggregate turnover exceeds the statutory threshold; renting of commercial property is a taxable supply and is not subject to supplier-side reverse charge by default. Registration is common across activities and aggregate turnover determines liability. If turnover is below the threshold and the supplier is unregistered, the recipient (e.g., a bank) may be required to pay GST under the reverse charge mechanism. Queries on input tax credit set off were raised but not resolved in these replies.