GST on Notional rent

[kamalakara ks]

Industrial building given on lease basis . Lease amount is ₹ 600 lacks interest free deposit which is refundable after the expiry period of 6 years . No monthly rent . How valuation of rental income for the purposes of GST payment . How GST invoice to be issued. How tenant take GST credit as he is not paying monthly rent .

AI Summary

Leasing Industrial Building with 600 Lakh Deposit Raises GST Valuation, Invoicing Issues; Consider Open Market Value Approach An industrial building is leased with a refundable deposit of 600 lakhs for six years, without monthly rent, raising questions about GST valuation and invoicing. One response suggests treating the deposit as deemed rent, requiring GST payment based on potential earnings from the deposit. Another advises using open market value for valuation. It is noted that without an invoice, the tenant cannot claim GST credit. It is recommended to issue a receipt voucher for the deposit and charge GST, and a refund voucher when the deposit is returned, although no credit is allowed for the tenant.