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Minutes of the 54th Meeting of the GST Council held on 09th September, 2024 The 54th GST Council meeting, chaired by the Union Finance Minister, addressed multiple agenda items, including confirmation of previous meeting minutes, ratification of government notifications, and recommendations from the Law and Fitment Committees. Key discussions included amendments to CGST Rules, clarifications on tax credits, and GST rates for various goods and services. The Council also reviewed the performance of GST-related bodies and discussed the integration of digital payment options. A pilot project for B2C e-invoicing was approved, and the Council agreed to form a GoM to examine the future of Compensation Cess. Issues related to IGST settlement and the GST Appellate Tribunal were also deliberated.
Minutes of the 47th Meeting of GST Council held on 28th & 29th June 2022 The 47th GST Council meeting, chaired by the Union Finance Minister, addressed several key issues, including the confirmation of previous meeting minutes, ratification of notifications, and consideration of recommendations from various committees. Discussions covered GST rate changes, exemption reviews, and correction of inverted duty structures. The Council also addressed refund claims, mandatory registration for suppliers using e-commerce platforms, and amendments to CGST rules. The meeting emphasized improving GST compliance through system reforms and discussed the feasibility of e-way bills for gold and precious stones. Additionally, the Council considered extending compensation to states post-GST implementation and reviewed reports from various Groups of Ministers.
Minutes of the 53rd Meeting of the GST Council held on 22nd June, 2024 The 53rd GST Council meeting, chaired by the Union Finance Minister, focused on various amendments and clarifications regarding the GST Act. Key agenda items included amendments to the CGST and IGST Acts, addressing issues like non-applicability of GST on Extra Neutral Alcohol used in alcoholic liquor production, and clarifying provisions related to reverse charge mechanism supplies. The Council also discussed reducing litigation by setting monetary limits for departmental appeals and proposed changes in GST rates for certain goods and services. Additionally, the Council reviewed the revenue position and the status of the GST Appellate Tribunal, emphasizing the need for rate rationalization in future meetings.
2022 (3) TMI 573 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA The ruling addresses ITC eligibility for common services used for both taxable and exempt supplies. The AAR declined to rule on three issues as they fall outside Section 97(2) of CGST Act. However, it observed that ITC on CISF services and water treatment plant maintenance should be restricted proportionately to taxable supplies. Township security, horticulture, residential quarters maintenance, and sewage treatment plant services were deemed ineligible for ITC as they're unrelated to business operations. Information system maintenance qualifies for ITC only if used exclusively for taxable supplies.
Minutes of the 52nd meeting of the GST Council held on 07th October 2023 The 52nd GST Council meeting, chaired by the Union Finance Minister, addressed various agenda items, including confirming previous meeting minutes, ratifying notifications, and discussing issues recommended by the Law Committee. Key discussions involved aligning CGST Act provisions with the Tribunal Reforms Act, clarifying taxability of personal and corporate guarantees, and proposing a special procedure for condoning delays in filing appeals. The Council also considered Fitment Committee recommendations on GST rates and exemptions, reviewed revenue positions, and discussed the classification of services for GST applicability. Additionally, amendments to GST rules and forms were proposed to streamline processes and address industry concerns.
Important amendments as per 47th GST Council meeting - Amendments, Exemptions & Rate Changes The 47th GST Council meeting introduced several key amendments and changes. Taxpayers with turnover over 20 crore must declare non-requirement of e-invoicing on invoices. UPI and IMPS are now accepted for electronic cash ledger payments, and funds can be transferred between GSTINs under the same PAN. Interest on wrongly availed ITC applies only if utilized. GSTR 3B now requires separate disclosure for supplies via electronic commerce operators. Service-related changes include a new 18% tax on government construction services and withdrawal of exemptions for hotel accommodations under Rs. 1,000 and residential dwelling rentals to GST-registered persons. Goods-related changes include withdrawal of exemptions for pre-packaged food items and clarification on fly ash bricks taxation. Amendments also extend time limits for adjudication and refund applications and exempt certain taxpayers from filing annual returns.
2019 (4) TMI 454 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA Reverse Charge u/s 9(4) prior to 13.10.2017 - receipt of supply of goods and / or services from an unregistered person from an unregistered person - N/N. 8/2017 dated 28.06.2017 read with N/N. 38/2017 dated 13-10-2017 - section 9(4) of the CGST Act SGST Act - recovery of tax under section 9(4) of CGST Act - interest on the delayed payment of CGST / SGST under section 9 (4) of the Act - Effect of taxation of circular dated 2nd May 2018 including interest on the transaction dated 31st August 2017.... ... ...
RCM liability on Rent of House or Offices A discussion on a forum addressed the applicability of Reverse Charge Mechanism (RCM) under GST for renting residential and commercial properties. The initial query sought clarification on RCM liability when rent is below Rs. 50,000, particularly if the landlord is unregistered and the tenant is registered. Responses clarified that RCM applies to residential properties rented to registered persons, with no rent threshold specified. For commercial properties, RCM is applicable if the government supplies the property. It was noted that GST at 18% applies if residential rent exceeds Rs. 50,000, but no authoritative cap was found for this threshold.
2020 (11) TMI 1060 - APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHAN Exemption from GST - Lease Agreement between the Appellant Company i.e. the Lessee and RLDA for a period of 99 years - whether amount transferred by the Appellant Company as Security Deposit in pursuance to the tender and lease agreement dated 08.11.2019 is exempt under GST in view of the N/N. 04/2019-Central Tax (rate) dated 29.03.2019 or N/N. 12/2017-Central Tax (rate) dated 28.06.2017? - HELD THAT:- It is observed that the appellant has totally misconstrued the clause 26.3 which provides for ... ... ...
2020 (7) TMI 353 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN Exemption from GST - Lease Agreement between the Applicant Company i.e. the Lessee and RLDA for a period of 99 years - Amount transferred by the Applicant Company as Security Deposit in pursuance to the tender and lease agreement - amount deposited during February, 2019 - Applicability of N/N. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017 - HELD THAT:- The elements regarding long term lease (present lease is 99 years) and entity havin... ... ...
SALIENT FEATURES OF GST The Goods and Services Tax (GST) is a dual levy imposed by the Centre and States on a common tax base, comprising Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for intra-state and inter-state transactions, respectively. GST subsumes various central and state taxes and applies to the supply of goods and services with certain exemptions. It categorizes supplies into taxable, exempt, inter-state, intra-state, composite, mixed, and zero-rated supplies. GST is a destination-based tax with input tax credit provisions. There are three levy methods: normal, composition, and reverse charge. Alcohol and certain petroleum products are excluded from GST.
RECENT DEVELOPMENTS IN GST The Reserve Bank of India's monetary policy indicates a stable inflation and growth outlook, projecting a 7.2% GDP growth for FY 2025. Recent GST developments include several CBIC notifications implementing the 54th GST Council's decisions, affecting rates and reverse charge mechanisms, particularly on non-residential property rentals and metal scrap. Landmark Supreme Court ruling allows input tax credit for buildings used in service supply. September 2024 GST collections grew by 6.5%, with expectations of higher collections during the festive season. New rules and forms have been introduced, including changes to CGST rules, procedures for rectifying orders, and mandatory registration for metal scrap dealers.
GST applicability on Rental income to Director of company A private limited company pays rent and interest to its director, raising questions about GST applicability. The total turnover, including external rental income, is 23 lakhs. Interest income is nil-rated, while commercial property rent is taxable. If turnover exceeds 20 lakhs, GST applies. The director, registered under GST, must charge GST on rent to the company, not under reverse charge. Salary received by the director is not considered a supply of goods or services. The discussion highlights that services provided by a director in a personal capacity are subject to forward charge, not reverse charge, except for director-specific roles.
2024 (12) TMI 396 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH Levy of GST on rent who has to pay owner or tenant - special provision in GST Act for Government Occupied Private Building - Who is liable for GST on rent owner or tenant? - GST on rent has to borne by owner for Government occupied private buildings or not. HELD THAT:- GST shall apply on lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, which is a supply of service. Lease is where possession is transf... ... ...
RCM on Rent Paid to landlords related to residential building used by the employees of the company A private limited company in the manufacturing sector is seeking advice on whether it is liable to pay GST under the Reverse Charge Mechanism (RCM) for rents paid to unregistered landlords for residential buildings used by its employees. Several contributors provided insights, highlighting that GST at 18% is applicable under Notification No. 05/2022-Central Tax (Rate) dated 13th July 2022, and ITC can be availed if the expenditure is in the course of business. However, concerns about potential litigation and the conservative approach of not claiming ITC were discussed. Contributors also suggested alternative arrangements, such as reimbursing employees directly, to mitigate litigation risks.
2023 (3) TMI 622 - AUTHORITY FOR ADVANCE RULING, ODISHA Levy of GST - Forward Charge Mechanism (FCM) or Reverse Charge Mechanism - Service Received by a registered person by way of renting of residential premises used as guest house of the registered person - HELD THAT:- It is clear that GST will be applicable even if the residential property is rented out to a registered person w.e.f. 18th July 2022. Liability to pay GST @ 18% under the reverse charge mechanism will arise on the recipient (tenant), if he is a registered person under GST with no othe... ... ...
Annexure 8: Check list for Key Points for supply and supply of goods or services or both The key points for the classification and treatment of supplies under the GST law, focusing on the nature of supply, whether taxable, exempt, or zero-rated. It emphasizes the importance of correctly classifying transactions as inter-state or intra-state and highlights the treatment of promotional items, capital goods, and transactions involving related or distinct persons. The text also explains the inclusive definition of 'supply' under GST, which encompasses various transactions like sale, transfer, and import of services. It details exceptions where supply can occur without consideration, such as transactions between related persons or import of services. Additionally, it discusses activities not treated as supply, like employee services to employers and certain government functions, and clarifies the classification of composite supplies and works contracts.
RCM - Residntial Dwelling In a discussion about the Goods and Services Tax (GST) on renting residential dwellings, participants debated the implications of the Reverse Charge Mechanism (RCM) when a residential property is rented to a registered person. One participant clarified that if the tenant is registered with GST, they must pay GST under RCM, regardless of the property's use. Another participant noted that if the supplier and place of supply are in different states, Integrated GST (IGST) applies. They also discussed the necessity of registration under certain sections if the recipient is not already registered in the state where the property is located.
Rates for supply of services under IGST Act The Government of India issued Notification No. 8/2017 on June 28, 2017, under the Integrated Goods and Services Tax (IGST) Act, 2017, specifying the tax rates for inter-State supply of services. The notification outlines various service categories, their corresponding IGST rates, and conditions for tax applicability. For construction services, specific provisions apply based on project type, commencement date, and tax options exercised by promoters. The notification mandates that 80% of input services should be sourced from registered suppliers, with specific conditions for input tax credit and reverse charge mechanisms. The notification also includes detailed explanations and conditions for various service sectors.
Rates for supply of services under CGST Act The Government of India issued Notification No. 11/2017-Central Tax (Rate) on June 28, 2017, under the Central Goods and Services Tax Act, 2017. This notification specifies the rates of central tax applicable to various intra-State services. It includes a comprehensive table detailing service categories, descriptions, applicable tax rates, and conditions for each service type. The notification outlines specific rates for construction services, transportation, hospitality, and other service sectors. It also includes provisions for input tax credit and reverse charge mechanisms, particularly in the construction sector, with detailed explanations and examples provided in annexures.
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