Whether GST can be wavie if one month rent is not charged due to Covid 10

[CA Suraj]

If the client has not charged one month rent from tenant of shop then whether gst is to be paid on it as there is rental agreement which fixed monthly rent or gst is not required to pay as no consideration is received.

[KASTURI SETHI]

Service has been provided and service has been received. Premises of business are already in the possession of the tenant. See Section 13 (2)(c) of CGST Act. In my view,tax has to be paid by the supplier of service.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. The tenant of the shop occupies the shop. The possession remains with the tenant. Hence, the service is provided. The agreement also assumes payment to be made at a selected date by the tenant. The possession remains for the agreed term. The service is rendered. GST is applicable.

[KASTURI SETHI]

Yes. Emphasis is on agreement and 'agreed for consideration' .

[CSSANJAY MALHOTRA]

Invoice needs to be issued with GST as per agreement ( refer section 31 of CGST Act 2017. You can raise credit note afterwards even in sane month thus waiving off rent. No Net GST liability in GSTR-1.

Make sure business associate should not be covered as related party or distinct person.

Alternatively, issue addendum to rent agreement or simple letter waiving off rent for particular month due to Covid-19. No GST liability will come in and no need for tax invoice.

If consideration is not received then transaction is not "Supply" ( exception being Schedule-1)

[YAGAY and SUN]

Force Majeure Clause is there in the agreement/contract. Consideration is mandatory part of contract. Services can be provided also as free without considerations. Whether GST is application on free services?

Needs further deliberation on this matter with Experts.

AI Summary

GST on waived rent: possession constitutes supply, so taxability arises unless documentation or exception avoids it.
Taxability of a waived month's rent depends on whether allowing continued possession constitutes a supply of services; if so, GST arises despite non-receipt of payment. Practical measures include issuing the invoice as per agreement and later issuing a credit note, or documenting an amendment/waiver to avoid creating a taxable supply; force majeure and statutory exceptions require further expert consideration.