A Commercial Property in a Complex is let out. As per Association’s bye-Law, the shop owner is primarily responsible to discharge monthly (common) maintenance expenses.
As per corporation rules, the Landlord is liable to pay yearly Corporation tax.
But the rental agreement provides that the tenant is liable to pay the monthly maintenance to the Association and also pay the corporation taxes.
In the above circumstances, is the landlord liable to pay GST on monthly maintenance and the corporation tax borne by the Tenant.
GST Applicability on Rent Plus Taxes: Examine 'Pure Agent' Concept Under Rule 33 of CGST Rules, 2017 for Clarity. A query was raised about the GST applicability on a commercial property where the tenant pays monthly maintenance and corporation taxes, as per the rental agreement. One response suggested GST is applicable if the rent plus tax exceeds the exemption limit of 20 lakh, as no specific exclusions exist for landlords in such cases. Another response argued that if the landlord collects and remits these amounts to the government and society, GST should not apply. Further replies referenced legal provisions, suggesting examining the 'Pure Agent' concept under Rule 33 of CGST Rules, 2017, and related circulars for clarity. (AI Summary)
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