GST on Rental Income

[Ethirajan Parthasarathy]

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.

AI Summary

GST on rental deposits: deposits become taxable when adjusted against rent in arrears for commercial property.
GST arises only on a taxable supply for consideration by a taxable person; deposits received as advances are not taxable while retained as deposits, but when a rental deposit is adjusted against rent in arrears it loses its identity as a deposit and is treated as rent, thereby attracting GST for commercial/industrial/business leases.