Liability to take Registration

[Pradeep Singhi]

Individual not registered under GST (unregistered person) providing service of renting of immovable property (commercial) to registered person and having interest income (from unsecured loan).

Aggregate Turnover from aforesaid services cross threshold limit of Rs.20 Lakh. Query with regards to aforesaid situation are as mentioned below.

1. Whether that unregistered person is required to take registration under GST as per S.22 of CGST Act ?

2. Whether that unregistered person can take benefit of S.23(2) of CGST Act read with Notification no. 5/2017-CT dated 19.06.2017 and Entry no. 5AB inserted in Not. No. 13/2017- CT(Rate) ?

3. Will answer to point no. 2 differ. if interest income is 'Zero' and rent income cross threshold limit of Rs. 20 Lakh ?

AI Summary

Unregistered property rental service provider must register for GST as income exceeds Rs. 20 Lakh under Section 22. An unregistered person providing commercial property rental services and earning interest income surpasses the Rs. 20 Lakh threshold, raising questions about GST registration requirements. Experts discuss whether registration is necessary under Section 22 of the CGST Act and if exemptions under Section 23(2) and related notifications apply. The consensus is that the individual must register for GST, as interest income contributes to aggregate turnover. Even if interest income is zero, surpassing the rental income threshold necessitates registration. Reverse Charge Mechanism (RCM) exemptions do not apply once the threshold is exceeded, requiring registration.