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16 Sep 2026 
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312 Views Sir,
A person source of income rental income yearly rs:26 lacs composition scheme registration
Old arrears for year 24 and 25 and for 26 year rental income present year 26-27 received and dealer gst and it returns filed up to date.
Question:
Treatment of gst and it returns purpose rental income transaction show in gst and it returns and tax pay procedure year 26-27
0 1. Composition scheme eligibility
If the person is exclusively engaged in renting immovable property, the ordinary composition scheme under Section 10 of the CGST Act is generally not available, as rental income is a supply of services.
The separate concessional scheme under Notification No. 2/2019-Central Tax (Rate) must also be examined, subject to its eligibility conditions.
2. GST on rental income
Commercial property rent is generally taxable at 18%, subject to applicable exemptions and reverse-charge provisions.
Residential property rented for residential use may qualify for exemption, subject to conditions.
GST treatment depends on property use, tenant status and the applicable scheme.
3. Arrears for FY 2024-25 and FY 2025-26
Arrears received during FY 2026-27 must be reconciled with the original rental periods.
If GST was already reported and paid, the same rent should not be taxed again merely because payment is received now.
If GST was not paid, determine the original time of supply under Section 13 of the CGST Act and examine the liability, interest and correction requirements for the relevant periods.
4. GST returns and payment
If validly eligible for composition:
CMP-08: Quarterly tax payment statement.
GSTR-4: Annual return.
Tax is generally paid through the electronic cash ledger; ITC is unavailable.
If composition is not legally available, the person must determine the applicable changeover date and comply under the regular scheme, including GSTR-1, GSTR-3B, tax invoices and GST payment.
5. Income-tax treatment
Rental income is separately considered under the Income-tax Act, 2025, applicable from 1 April 2026. The taxable house-property income may differ from gross rent after eligible deductions.
FY 2026-27 corresponds to AY 2027-28.
Final recommendation: Verify the GST registration scheme, property type, tenant status, year-wise rent, arrears and previous GST payments before determining the correct GST liability and filing procedure.
0 When was the registration under composition scheme taken? Which year?
TaxTMI 
TaxTMI 
