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

Understanding GST on Renting: Pay via Reverse Charge if Owner Unregistered, Claim ITC if Product Taxable. A forum participant inquired about the applicability of GST on renting a godown and a shop, questioning whether GST should be paid under the reverse charge mechanism and if input tax credit (ITC) could be claimed. Respondents clarified that GST is typically paid by the property owner. However, if the owner is unregistered, the tenant may pay GST under reverse charge and claim ITC, provided the tenant's final product is taxable. It was also advised to issue a self-invoice and disclose it in tax returns. All respondents agreed on these points.