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 Must Be Paid on Rental Income Exceeding Threshold; Not Covered Under Reverse Charge Mechanism A registered individual with a GSTIN inquired whether they must pay GST on rental income received from a bank and whether they should submit a bill to the bank or if the bank pays GST under Reverse Charge Mechanism (RCM). Responses clarified that GST must be paid on rental income if the threshold exemption is exceeded, and renting is not under RCM. Another participant asked about charging GST on rental income under 5 lakhs and using excess credit from trading activities. It was advised that GST should be charged if the aggregate turnover exceeds 20 lakhs annually.