A person is registered under GST on account of Rent from commercial property.
In a particular year the Land Lord recovers a sum of say 2,00,000 /- towards damages and re-painting charges from the tenant.
My Query is whether such amount is liable to GST and also income tax.
GST Applies to Landlord's Recovery Charges for Damages and Repainting as Additional Rental Income, Not Compensation A discussion on the applicability of GST on recovery charges for damages and repainting collected by a landlord from a tenant. The consensus among participants is that such charges are subject to GST, as they are considered additional rental income rather than compensation. One participant argues that these charges fall under liquidated damages and are not liable for GST, citing a Bombay High Court decision. However, the prevailing view is that the charges are taxable as they relate to the service of renting immovable property. The importance of documentation in determining taxability is also emphasized. (AI Summary)
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