JOINT OWNERS OF THE PROPERTY AND RENT.

[Sadanand Bulbule]

Dear Sirs

Person A & B are the residents of Kerala and are joint owners of two commercial complexes in Karnataka. They have one joint bank account and received ₹ 24 Lakhs as rent on commercial buildings during 2018-19. Both of them have filed Income Tax returns declaring 50% of their rental income and they have claimed that their individual turnover is less than ₹ 20 lakhs, the threshold limit prescribed and not labile for registration under GST.

The question is whether there is any provision under the GST Act for sharing the rental income like this and get away from registration under the GST Act?

Pl enlighten with relevant provisions.

AI Summary

Joint Property Owners Debate GST Registration on Split Rent Income Under Section 2(84)(g) of CGST Act, 2017 Two individuals, joint owners of commercial properties in Karnataka, received 24 lakhs in rent and filed income tax returns declaring 50% each, claiming exemption from GST registration as their individual turnover is below 20 lakhs. The discussion revolves around whether this income division exempts them from GST registration. An expert cites Section 2(84)(g) of the CGST Act, 2017, stating that bodies of individuals must register if turnover exceeds the threshold. Others reference a Kerala AAR ruling supporting the exemption if individual income is below the limit, but note this ruling's limited jurisdictional applicability. Suggestions include seeking provisional assessment or advance ruling to avoid future litigation.