Due to litigation between landlord of commercial property & tenant, the rents were not received. Civil suit for eviction is likely to be filed.
Is landlord liable to pay GST under the above circumstances.
One view could be that the landlord has to pay GST atleast to the extent of rental deposit already received. Is this view correct. What will be the situation after fully setting off the rental deposit.
Landlord's GST Liability on Rental Income: Is GST Payable When Rent Deposits Are Adjusted Against Arrears? A discussion on whether a landlord is liable to pay GST on rental income when rents are not received due to litigation with a tenant. Some participants argue that GST is payable if the rental deposit is adjusted against rent arrears, as it then constitutes a taxable supply. Others suggest that without actual rent received, GST may not be applicable. The consensus is that once a deposit is adjusted as rent, it loses its status as a deposit and becomes subject to GST. The applicability of GST depends on the nature of the property lease and its use. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
