TaxTMI 
TaxTMI 
GST on Rental Income
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....ST on Rental Income<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 20-11-2018 Last Reply Date:- 28-11-2018 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Due to litigation between landlord of commercial property & tenant, the rents were not received. Civil suit for eviction is likely to be filed. Is landlord liable to pay GST under the above circumstances. One view coul....
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....d be that the landlord has to pay GST atleast to the extent of rental deposit already received. Is this view correct. What will be the situation after fully setting off the rental deposit. Reply By KASTURI SETHI: The Reply: This is an extract of FAQ dated 31.3.17 Q4. What are the necessary elements that constitute supply under CGST/SGST Act? Ans. In order to constitute a 'supply', th....
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....e following elements are required to be satisfied, i.e. - (i) the activity involves supply of goods or services or both; (ii) the supply is for a consideration unless otherwise specifically provided for; (iii) the supply is made in the course or furtherance of business; (iv) the supply is made in the taxable territory; (v) the supply is a taxable supply; and (vi) the supply is made by a taxa....
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....ble person. Without consideration, you are not liable to pay tax. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: If deposit is adjusted against the rent-in-arrears, then GST would be payable. Reply By Ethirajan Parthasarathy: The Reply: Dear Doctor, Thanks for your reply. Can you little elaborate what will be the position after rental deposit is fully adjusted & tenant has neither vacated no....
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....r paying rent Reply By KASTURI SETHI: The Reply: There is not an iota of doubt about leviability of GST on rental deposit. It is an advance. Dr.Govindarajan Sir has rightly opined. Reply By YAGAY andSUN: The Reply: It will be treated as payments made in advance (i.e.deposits) and adjust accordingly. Hence liable for charging of GST. Reply By Ganeshan Kalyani: The Reply: When the deposit wa....
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....s received it was not taxable as it was not for the service rendered or to be rendered. But when it is adjusted against the rent to be receivable but not received then it looses its identity as a deposit and it takes the name of rent. Hence, when the deposit is adjusted with the unrealisable rent it is subject to GST. Reply By Mohit Chauhan: The Reply: I guess it's applicable to certain typ....
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....es of rent such as: 1. If the property is given out on lease, rent or licensed to occupy 2. If the property is leased out for commercial purposes, industrial or business property But in your situation I don't think you are liable to pay GST. Hope this was helpful at all.<br> Discussion Forum - Knowledge Sharing ....