GST liability on Recovery Charges

[Ethirajan Parthasarathy]

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.

AI Summary

GST on recovery charges: tenant payments for repairs may be taxable as additional consideration for renting immovable property.
Recoveries from tenants for repairs, repainting or damages, taken as additional consideration for renting immovable property, are treated as taxable consideration under GST when characterized as income; the key issue is whether the amount is compensation (potentially non taxable) or additional rental consideration, with documentary evidence and factual matrix determining taxability.