GST on rent

[Atul Saboo]

Landlord leasing commercial property earning more than Rs.20 lakh rent per annum.

Under which GST scheme landlord should register - regular or composition?

Please answer with reasoning and reference along with caselaw would help.

AI Summary

Landlords earning over Rs. 20 lakh must choose between GST regular or composition scheme; regular scheme often more beneficial. A landlord leasing commercial property and earning over Rs. 20 lakh annually must decide between the GST regular or composition scheme. Under the regular scheme, the landlord can collect 18% GST from tenants, while the composition scheme requires paying 6% from their own funds, as tenants may refuse GST payments. The composition scheme limits the landlord's ability to claim Input Tax Credit (ITC), and tenants cannot claim ITC either. Experts advise that unless tenants are ineligible for credit, opting for the regular scheme may be more beneficial. Compliance with all conditions of the chosen scheme is crucial.