Non resident- Rental income

[JIGAR SHAH]

Whether Non resident is required to take registration under GST, if he has rental income from immovable property of approx 12 lakhs in India? Is there any threshold limit for registration?

[KASTURI SETHI]

No threshold exemption is available. Registration is compulsory under Section 24 of CGST Act, 2017.

[SHARAD ANADA]

Refer sec 2(77) of CGST Act

(77) “non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;

Definition of IT Act is not applicable in GST.

If NRI is only providing renting services then in that case recepient is liable to pay GST. As Location of supplier is out of India

[Ganeshan Kalyani]

Section 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) of section 9;

(v) non-resident taxable persons making taxable supply;

[CASusheel Gupta]

Section 24 - Non resident taxable person, in my opinion is applicable for persons coming to India and making supply here occasionally say in exhibition.

As per section 27, registration granted to such NRTP is for 90 days only or extended period.

Person siting outside India and renting his property cannot be called as undertaking occasional transaction but doing regular transaction and shall be outside the definition of NRTP.

As pointed out by Sharad Anada, RCM should be applicable seems more appropriate.

Thanks and Regards

[KASTURI SETHI]

Sh.Susheel Gupta Ji,

Yes. RCM is applicable as it is covered at Serial No.1 of Notification No.10/17-IT(Rate) dated 28.6.17 as amended.

[JIGAR SHAH]

Dear all,

Thank you for the response towards the query.

AI Summary

GST registration requirement for non-resident rental providers: recipient liable under reverse charge; no registration threshold. Registration is compulsory for persons falling under the definition of a non-resident taxable person; there is no threshold exemption. Non-resident suppliers making occasional supplies are subject to temporary registration, but continuous rental receipts from abroad raise a distinction between occasional supply and regular activity. Where the supplier is located outside India, the recipient may be liable under the reverse charge mechanism as provided by the notifications.