TaxTMI 
TaxTMI 
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.
GST on rent
26 Jul 2024 
6 Replies 
7161 Views Asked by
Composition scheme: landlord may pay tax from own funds and forego input tax credit, affecting tenant recoverability.
Landlord leasing commercial property may opt for the composition scheme or regular GST registration. Composition taxpayers cannot charge GST to tenants, must pay the composition rate from their own funds, and cannot claim input tax credit. Regular registration permits the landlord to collect GST from tenants and avoids out-of-pocket tax burden, while tenants who are taxable persons may claim input tax credit. Eligibility for composition exists for service suppliers but is subject to multiple conditions that must be monitored. (AI Summary)
Landlord leasing commercial property may opt for the composition scheme or regular GST registration. Composition taxpayers cannot charge GST to tenants, must pay the composition rate from their own funds, and cannot claim input tax credit. Regular registration permits the landlord to collect GST from tenants and avoids out-of-pocket tax burden, while tenants who are taxable persons may claim input tax credit. Eligibility for composition exists for service suppliers but is subject to multiple conditions that must be monitored. (AI Summary)