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Showing 21 to 40 of 65 Records Search Text: GST applicable on residential rent RCM limit |
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Rates for supply of services under UTGST Act The Government of India, under the Union Territory Goods and Services Tax (UTGST) Act, 2017, has issued Notification No. 11/2017 detailing the applicable tax rates for various service categories within Union Territories. The notification specifies tax rates for services such as construction, transport, accommodation, and trade services, among others. It outlines conditions for tax applicability, including input tax credit provisions and reverse charge mechanisms. The notification also provides detailed explanations and annexures for calculating tax liabilities and input tax credits for real estate and other service sectors, effective from July 1, 2017.
CBIC CLARIFICATIONS ON TAXABILITY OF VARIOUS SERVICES The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications on the taxability of various services following the GST Council's recommendations. Key points include: no GST on penal charges by regulated entities as per RBI guidelines; GST exemption for payment aggregators on transactions up to two thousand rupees; regularization of GST on research services funded by government grants and on skilling services; GST applicability on facility management services to the Municipal Corporation of Delhi; clarification that the Delhi Development Authority is not a local authority under GST law; and regularization of GST on services by Goethe Institute/Max Mueller Bhawans.
Mandatory GST Registration Due to RCM Reverse charge mechanism (RCM) under the Goods and Services Tax (GST) requires recipients of certain goods or services to pay the GST instead of suppliers. According to Section 24 of the CGST Act, 2017, individuals or entities liable under RCM must register for GST regardless of turnover. RCM applies to specific goods and services, casual taxable persons, e-commerce operators, and importers of services. Non-compliance can result in penalties and interest. Recipients cannot use Input Tax Credit for RCM liabilities and must self-invoice when dealing with unregistered suppliers. Businesses must ensure timely registration to avoid legal and financial consequences.
RCM ON FEES TO PAID TO LOCAL AUTHORITIES A discussion on a forum revolves around the applicability of the Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) on fees paid to local authorities for statutory permissions and approvals for real estate projects. The conversation references Notification No.13/2017 and No.12/2017, which outline taxable and exempt services. Participants debate whether such fees are taxable under RCM, considering definitions and exemptions related to local and governmental authorities. Some argue that these services might be exempt if linked to functions under Article 243W of the Constitution. The discussion also touches upon legal interpretations and potential implications for taxpayers receiving notices for RCM liabilities.
Whether RCM is applicable on rent paid to a director of the company In a discussion about the applicability of the reverse charge mechanism (RCM) under GST for rent paid to a director by a company, participants debated whether such payments fall under Notification 13/2017. The consensus was that RCM applies only to services provided by a director in their official capacity, not for personal services like renting property. It was noted that the director's liability under forward charge mechanism (FCM) depends on factors like turnover and the nature of the rent. Participants suggested seeking advance rulings for certainty, acknowledging potential departmental disputes. A recent case supported the view that RCM liability does not apply to rent paid to directors.
The article outlines essential GST compliance tasks for the financial year-end 2022-2023. It emphasizes the need for meticulous attention to both personal and vendor compliance, suggesting the use of technology, internal controls, and staff training. Key tasks include filing applications for LUT, opting for composition schemes, tracking export proceeds, and ensuring accurate documentation and reconciliation of GST returns, invoices, and credits. It also highlights the importance of verifying input tax credits, compliance with ISD provisions, and analyzing GST implications on various expenses. Amendments to GST returns are permissible until November 30, 2023.
2023 (4) TMI 44 - APPELLATE AUTHORITY FOR ADVANCE RULING, DELHI Levy of GST - sale of commercial super built up area on behalf of MoHUA, Government of India - Appellant is also supplier of service while selling such commercial built-up space as an agent on behalf of the Government of India in the colonies under redevelopment - sale of commercial built-up space - sale of built-up space for which part of the consideration was received prior to 01.07.2017, and partly on or after 01.07.2017 - consideration received under an agreement to sell constructed units in... ... ...
2021 (4) TMI 618 - AUTHORITY FOR ADVANCE RULING, GUJARAT Reverse Charge Mechanism - Liability of GST - rate of GST - pure agent services or not - interest on late payment of invoices of imported goods - reimbursement of Stamp tax paid as a pure agent. Whether liability to pay GST on reverse charge arises if amount is paid as interest on late payment of invoices of imported goods? - If yes, then at what rate? - HELD THAT:- The foreign buyer has tolerated the act of receiving payment after a lapse of a period of 120 days from the date of the invoice in ... ... ...
FAQs on real estate - GST The Indian government has clarified the new GST rate structure for the real estate sector effective from April 1, 2019. The GST on residential apartments is set at 1% for affordable housing and 5% for others, without input tax credit (ITC). Promoters of ongoing projects can opt to pay GST at old rates (8% or 12% with ITC) by May 10, 2019. For commercial apartments, the GST is 5% without ITC in residential projects and 12% with ITC in others. The guidelines also address GST on development rights, floor space index, and long-term leases, with specific conditions for ongoing projects.
FAQs (Part I) on Real Estate The circular addresses the new GST rate structure for the real estate sector effective from April 1, 2019. It provides clarifications on various aspects, including the applicable GST rates for residential and commercial apartments, definitions of affordable housing, ongoing projects, and the options available for promoters regarding old and new GST rates. The document also covers GST implications on development rights, floor space index, and long-term leases. It specifies conditions for compliance, such as purchasing from registered suppliers and reverse charge mechanisms. The FAQs aim to guide stakeholders in understanding and applying the new GST rules effectively.
Minutes of the 34th GST Council Meeting held on 19th March, 2019 The 34th GST Council Meeting, chaired by the Union Finance Minister, was held on March 19, 2019, via video conference. Key agenda items included the confirmation of minutes from previous meetings, ratification of government notifications, and discussions on GST rates for the real estate sector. The Council decided on new GST rates of 1% for affordable housing and 5% for other residential properties without input tax credit (ITC), effective April 1, 2019. Ongoing projects could opt to continue with old tax rates. The Council also discussed the creation of GST Appellate Tribunal benches and approved a draft order to facilitate MSME sector decisions. The meeting concluded with expressions of appreciation for the Chairperson's leadership.
Clarifications regarding applicability of GST on certain services The circular clarifies the applicability of GST on various services based on recommendations from the GST Council's 55th meeting. It states that no GST is payable on penal charges by financial entities as per RBI instructions. Payment Aggregators are exempt from GST for transactions up to two thousand rupees, aligning with acquiring bank definitions. Research and development services by government entities and skilling services by NSDC-approved partners are regularized for GST payment. Facility management services to MCD are subject to GST. DDA is not considered a local authority under GST law. GST on renting commercial property by unregistered persons to registered persons under composition levy is regularized. Ancillary services by electricity utilities and services by Goethe Institute are also regularized.
Clarifications regarding applicability of GST on certain services The Government of Goa issued a circular clarifying the applicability of GST on specific services following recommendations from the GST Council. Key points include: no GST on penal charges by regulated entities, GST exemption for payment aggregators on transactions up to 2000, and regularization of GST on research and development services provided by government entities. The circular also clarifies GST applicability on facility management services to MCD, confirms DDA is not a local authority, and regularizes GST payments on certain services provided by electricity utilities and Goethe Institutes. Difficulties in implementation should be reported to the Board.
Clarification regarding applicability of GST on certain services The circular clarifies the applicability of GST on various services, aligning with recommendations from the 55th GST Council meeting. Penal charges by Regulated Entities for non-compliance with loan terms are not subject to GST. Payment Aggregators are exempt from GST for transactions up to two thousand rupees. GST on research and development services by government entities and skilling services by National Skill Development Corporation-approved partners is regularized. Facility management services to the Municipal Corporation of Delhi are taxable. Delhi Development Authority is not a local authority under GST law. GST on renting commercial property by unregistered persons to registered persons is regularized. Ancillary services by electricity utilities and services by Goethe Institute/Max Mueller Bhawans are also regularized.
All about GST on RENTING of Immovable Property The article discusses the complexities of Goods and Services Tax (GST) on renting immovable property in India, focusing on changes in taxability rules. Initially, residential properties rented for residence were exempt from GST, but from July 18, 2022, GST applied if the tenant was a registered entity. Amendments in January 2023 provided conditional relief for proprietors renting for personal use. Further changes in October 2024 and January 2025 addressed issues for unregistered landlords and composition dealers, respectively. The article highlights the evolving regulatory landscape and the impact on taxpayers, emphasizing the importance of understanding current notifications.
Navigating GST on Rental Income: Key Rules, Exemptions & Compliance Goods and Services Tax (GST) applies to rental income based on property type and tenant nature. Commercial property rentals incur an 18% GST, while residential rentals for residential use are exempt. If residential properties are rented for commercial purposes, GST applies under the Reverse Charge Mechanism (RCM), with the tenant responsible for payment. Agricultural land leased for non-agricultural activities is also taxable. Landlords must register for GST if their total taxable turnover exceeds INR 20 lakh. Key notifications clarify exemptions and RCM applicability. Compliance requires proper invoicing and GST return filing by both landlords and tenants.
Clarifications regarding applicability of GST on certain services The circular provides clarifications on GST applicability based on recommendations from the 55th GST Council meeting. It states that no GST is payable on penal charges levied by regulated entities as per RBI instructions. GST exemption is available to Payment Aggregators for transactions up to two thousand rupees. Research and development services by government entities are exempt from GST when funded by grants. Skilling services by Training Partners approved by the National Skill Development Corporation are exempt. Facility management services to the Municipal Corporation of Delhi are taxable. Delhi Development Authority is not considered a local authority under GST law. GST on renting commercial property by unregistered persons to registered persons is regularized. Certain support services by electricity utilities are exempt. GST on services by Goethe Institute/Max Mueller Bhawans is regularized for a specified period.
Recommendations during 54th meeting of the GST Council The 54th GST Council meeting recommended several changes to streamline tax rates and compliance. Key decisions include forming a Group of Ministers to address GST issues in life and health insurance, reducing GST on certain cancer drugs from 12% to 5%, and exempting research and development services by government entities from GST. The Council also proposed a pilot for B2C e-invoicing, clarified GST rates on various goods and services, and introduced measures to facilitate trade, such as waiving penalties for specific tax demands. Additionally, amendments to rules and procedures were recommended to improve tax administration and compliance.
2024 (8) TMI 1276 - CESTAT CHANDIGARH Service tax on Construction and sale of Complex/Houses/Flats constructed by the appellant - Service tax on certain receipts under taxable category of Real Estate Agent service - Liability to pay service tax under Reverse Charge Mechanism on legal charges, manpower supply and works contract services - extended period of limitation. Service tax on Construction and sale of Complex/Houses/Flats constructed by the appellant - HELD THAT:- This issue has been decided against the Revenue by the judgment... ... ...
2023 (7) TMI 870 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA Exemption from GST - residential dwelling or not - PG/Hostel Rent paid by inhabitants - charges collected towards allied additional services provided by the LLP - bundled service along with the service of providing of Hostel/Paying guest or not - GST on reverse charge will be applicable on the rental to be paid to the landowners or not - entry No. 12 of Notification No. 9/2017 dated 28th September 2017. Whether PG/Hostel Rent paid by inhabitants qualify for GST exemption, since they are used as ... ... ...
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