Question ID :
38192
GST ON RENTING OF COMMERCIAL PREMISES
X an individual is carrying on business (GST registered business). The premises from which the business is carried on is purchased jointly by X and his 3 brothers. Thereby total number of landlord in the premises is 4, out of them only one X is a GST registered person. Others co owner has no GST registration, nor their business receipts is more than 20 L during any FY. The premises has been given to X on rent for business purpose @ 50 K per month. Now my query is how GST will be chargeable on renting of premises. Because X one of the co owner is both Landlord, and tenant, having same GST registration. While other co owner has no gst registration nor their business receipts is in excess of 20 L
Posted by
pradeep kumar agrawal
on
Jun 08, 2019
Filed Under
GST
The rent of Rs. 50 K paid by X shall be going to the remaining 3 brothers and not to himself, as one cannot pay himself and one cannot rent a property to himself of which he is the co-owner.
So going by this, G.S.T. wont be chargeable under this scenario, unless they form either a partnership firm/AOP and get it registered under G.S.T.
Posted by
Shwetal oswal on
Jun 08, 2019
Answer ID :
76808
no gst is payable on this rent one can not be a tenent as well a land lord with ineself, as the individual rent of the other 3 brothers are below the Rs, 20 lakh limit, no gst on this rent in the case of X also.
Posted by
CA. VENKITARAMAN K V on
Jun 09, 2019
Answer ID :
76820
One cannot enter into agreement to give a property to himself on rent in which he is co-owner. Also, share of co-owners are definite and share per co-owner does not exceed 20 Lakh. So no GST is leviable.
Posted by
CA. chunauti dholakia on
Jun 10, 2019
Answer ID :
76823
X can not let out the property Owned by him to himself , hence if there is no transaction no GST is applicable on renting of this property.
Posted by
HARJEET on
Jun 10, 2019
Answer ID :
76824
X can not let out the property Owned by him to himself , hence if there is no transaction no GST is applicable on renting of this property.
Posted by
HARJEET on
Jun 10, 2019
Answer ID :
76825
The property is owned by 4 brothers and hence the rental income is to be assessed in the status of AOP and hence there cannot be an individual assessment of rental income in the hands of the co-owners.
Posted by
SIVADAS CHETTOOR on
Jun 11, 2019