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 obligation to pay GST: tenants cannot withhold GST component; statutory payment and reporting duties persist.
Non-payment or withholding of the GST component by a tenant is improper: the tenant's statutory liability to pay GST arises on supply and cannot be unilaterally deferred. Time of supply rules (invoice, provision of service, receipt of payment) fix when tax is chargeable; late remittance by the supplier may attract interest. Contract terms cannot override statutory payment and collection obligations. The recipient's entitlement to input tax credit depends on electronic reporting reconciliation, which explains recipient insistence on invoice visibility but does not permit withholding of GST.