Restoration charges paid by tenant to society on behalf of landowner -GST implication

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....estoration charges paid by tenant to society on behalf of landowner -GST implication<br> Query (Issue) Started By: - KSA Associates Dated:- 25-2-2026 Last Reply Date:- 26-2-2026 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>ABC Ltd. (A registered person) paid the restoration amount directly to the society wherein the invoice was raised on&nbsp; Landlord (unregistered). ABC Ltd is going t....

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....o adjust the paid amount towards monthly rent. What is GST Implication of this Transaction. whether the restoration paid on behalf of landlord and later collected by landlord will come under other recovery? &nbsp; Reply By Sadanand Bulbule: The Reply: The restoration charges paid by ABC Ltd on behalf of the landlord and subsequently adjusted against rent do not amount to a separate taxa....

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....ble supply or "other recovery" by ABC Ltd. However, in terms of Section 15(2)(b) of the CGST Act, the amount represents a liability of the landlord discharged by the tenant and therefore forms part of the value of renting services. Any GST liability, if applicable, would arise in the hands of the landlord on the enhanced rental value. Final Takeaway: There is no GST exposure for ABC Ltd on t....

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....he reimbursement/adjustment. The tax implication, if any, travels with the rental supply and rests entirely with the landlord, since the restoration amount merely augments the value of rent. Reply By KASTURI SETHI: The Reply: ABC Ltd. is not liable to pay tax on restoration charges. However, restoration charges are to form the part of taxable value at of the hands of landlord, if the aggregat....

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....e turnover of the landlord exceeds threshold limit as prescribed under Section 22 (1) of CGST Act. I endorse the views of Sh.Sadanand Bulbule, Sir.<br> Discussion Forum - Knowledge Sharing ....