GST on Godwon Rent and Shop rent

[mithun saha]

Dear sir /Madam

I have one godown and one shop . and paying Godown Rent ₹ 5500/pm and shop rent ₹ 7500/ pm.

I think i have to pay GST under Reverse Charge on above Rent @ 18 %, Is it Correct ?

If i Pay GST on Reverse Charge then is it available for claiming ITC of reverse charge on Rent ?

regards

Mithun saha

[Rajagopalan Ranganathan]

Sir,

Actually the gst is to be paid by the owner of godown and shop. If the owner is not registered then you may pay the gst under reverse charge and take ITC of the same.

[DR.MARIAPPAN GOVINDARAJAN]

As indicated by Shri Ranganathan, the GST on rent is to be paid by them. Please ensure whether he is a registered person or he is coming under the threshold limit. If it is so you may pay tax on reverse charge basis and take credit of the same.

[Ganeshan Kalyani]

The supplier of service is liable to pay GST on his rent income. In case he is unregistered then you will become liable to pay GST on his behalf under reverse charge basis.

[Ganeshan Kalyani]

In addition to this you will have to issue self invoice. And disclose the same in the return.

Yes, you are eligible for input tax credit of the tax paid under reverse charge provided your final product is taxable.

[Himansu Sekhar]

I also agree with all the replies.

[Ganeshan Kalyani]

Thanks.

AI Summary

Reverse charge on rent applies where landlord is unregistered; tenant must pay GST, self invoice and may claim input tax credit. The supplier (owner/landlord) is primarily liable to account for GST on rent; if the supplier is unregistered or below the registration threshold, the recipient must pay tax under the reverse charge mechanism, issue a self-invoice, disclose the reverse charge in returns, and may claim input tax credit on the tax paid under reverse charge provided normal ITC conditions are met and the recipient's outward supplies are taxable.