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

GST registration threshold for joint owners: individual shares below small supplier limit may negate registration obligation.
When co-owners divide rental receipts so that each individual owner's share falls below the small supplier threshold, individual owners need not register for GST on that rental income; however, Authority for Advance Rulings decisions recognizing this principle bind only the applicant and the jurisdictional officer within that State, so taxpayers should consider obtaining an advance ruling or provisional assessment to mitigate future dispute risk.