TaxTMI 
TaxTMI 
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 .
GST on Notional rent
17 Sep 2017 
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GST on notional rent: liability arises on deemed rental value; input tax credit generally unavailable without invoiced rent.
GST applies to arrangements where an interest free refundable deposit substitutes for periodic rent: such transactions are supply and taxable on a deemed rental value determined by market valuation rules. The landlord should document and account GST on the deemed rent; pragmatically amounts may be treated as advances with receipt vouchers charging GST and refund vouchers on repayment. Input tax credit for the tenant will generally not be available absent invoicing and corresponding accounting of the notional rent. (AI Summary)
GST applies to arrangements where an interest free refundable deposit substitutes for periodic rent: such transactions are supply and taxable on a deemed rental value determined by market valuation rules. The landlord should document and account GST on the deemed rent; pragmatically amounts may be treated as advances with receipt vouchers charging GST and refund vouchers on repayment. Input tax credit for the tenant will generally not be available absent invoicing and corresponding accounting of the notional rent. (AI Summary)