GST Applicability

[Ethirajan Parthasarathy]

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.

AI Summary

GST on amounts collected for maintenance and taxes: taxable unless bona fide treated as pure agent under GST rules.
GST applicability hinges on whether amounts collected by the landlord are part of the value of supply-taxable when the landlord supplies services and benefits from the receipts-or are true pass-throughs falling under the pure agent mechanism permitting exclusion from taxable value. Small supplier exemption thresholds may exclude liability. Administrative guidance treats certain cooperative society collections for municipal taxes as non-leviable when collected and remitted on behalf of owners; factual compliance with the pure agent conditions and related circulars is determinative.