Non-payment of GST amount from invoice, by tenant.

[Arvind N]

Dear Sirs/experts!

I have rented out my commercial premices for business to a tenant. Tenant, a corporate, is doing business for past 2.5 yrs, successfully. For last couple of months, they are holding GST amount & only paying the rest of the total invoice rent amount, stating that, I have to pay the GST first, after the same gets reflected from their side, they will release the same paid GST amount back to me. As I am paying GST quaterly, I have not yet got the GST back for the previous month's, as only after the 3rd month GST payment, they will get the payment reflected from their side.

Sirs, are their doings legally correct ?

Please put some light on this situation.

Thanks & best regards,

Arvind.

AI Summary

Tenant Must Pay GST Monthly with Rent; Withholding Violates CGST Act and Statutory Obligations A landlord raised a concern about a tenant withholding the GST portion of rent payments, claiming GST must be paid first by the landlord and then reimbursed. Experts in the forum clarified that this practice is incorrect under the CGST Act. The tenant is obligated to pay GST monthly along with rent, and any delay in the landlord's quarterly GST filing does not justify withholding. The landlord is advised to ensure monthly GST payments to avoid penalties. The tenant's refusal to pay GST contradicts statutory obligations, as GST is an indirect tax ultimately borne by the consumer.