Sir, Now Service by way of renting of any immovable property other than residential dwelling is brought under RCM vide Notification No. 09/2024-Central Tax (Rate) dated: 8/10/2024.
Queries are
01. What if Commercial rental income is exceeds Rs. 20 lakhs per year?
02. What if commercial property landlord is a non - resident individual?
03. Liability to register in Karnataka for commercial rental Income is Rs. 40 lakhs or 20 lakhs?
Please advice
GST on Commercial Property Rent: 18% Tax, Rs. 20 Lakh Registration Threshold, Special Rules for Non-Residents in Karnataka. The discussion centers on the Goods and Services Tax (GST) implications for renting immovable property for commercial purposes. The primary queries involve the registration threshold for commercial rental income, the implications for non-resident landlords, and specific thresholds applicable in Karnataka. Responses clarify that renting commercial property is taxable at 18% GST, with registration required if annual turnover exceeds Rs. 20 lakhs. Non-resident landlords must register regardless of income thresholds. The discussion also highlights that the reverse charge mechanism applies when services are received from unregistered persons by registered entities, but not for non-resident taxable persons. (AI Summary)
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