During last one year most of the landlords are facing problem of collection of rent. Tenants ask for adhoc reduction, which is further reduced during lockdown period. Even the reduced rent is paid in instalments or even deferred
In such a situation, what is the safe approach for the landlord to file his monthly GST returns and payment of tax thereon.
Landlords Urged to Amend Rental Agreements for COVID-19, Follow Section 7(c) CGST Act for Tax Compliance Landlords are facing challenges in collecting rent due to tenants requesting reductions, especially during lockdowns. The main concern is how landlords should handle GST returns and tax payments under these circumstances. Experts suggest that if no rent is collected, it is not taxable under Section 7(c) of the CGST Act, and landlords should amend rental agreements to reflect terms related to COVID-19. It is advised to issue invoices based on actual rent received and use credit notes for adjustments. This approach ensures compliance without revenue loss to the department. (AI Summary)
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