9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 724 - HC - GSTLiability of the tenants to pay GST when the rents exceed ₹ 20 Lakhs per annum - Order 15A of the Civil Procedure Code - HELD THAT - The liability of the tenants to pay GST when the rents exceed ₹ 20 Lakhs per annum is settled law and it cannot be disputed that when the admitted monthly rent is ₹ 3,50,462/-, the total annual rent would exceed the said figure of ₹ 20 Lakhs and that the said liability is fastened by the provisions of the GST Act, 2017 on the tenant only. There shall be a direction to the respondents/tenants to pay every month to the Competent Authority under the GST Act, 2017, tax @ 18% on the rent of ₹ 3,50,462/- payable every month to petitioners. The arrears of GST on the rent for the period from November 2018 till date shall be deposited to the credit of OS.No.230 of 2019 by the respondents within four (4) weeks from the date of receipt of a copy of this order along with the rent for the month of November 2018. Petition allowed.
Issues:
1. Challenge to the order passed by the City Civil Court, Hyderabad. 2. Entitlement of petitioners to rent for November 2018. 3. Liability of tenants to pay Goods and Services Tax (GST) on rents exceeding a certain amount. Analysis: The High Court of Telangana heard a revision filed against an order passed by the City Civil Court, Hyderabad, in a specific case. The petitioners contested the order as it omitted to mention their entitlement to rents for November 2018. The High Court noted a patent error in the lower court's order and held that the petitioners should also receive rent for November 2018 as per the provisions of Order 15A of the Civil Procedure Code. Furthermore, the petitioners argued that the respondents, as tenants, were liable to pay Goods and Services Tax (GST) on the rents payable to them. The High Court acknowledged the settled law that tenants must pay GST when rents exceed a certain threshold annually. In this case, with a monthly rent of ?3,50,462, the total annual rent surpassed the threshold, making the tenants liable to pay GST at 18% to the Competent Authority under the GST Act, 2017. Consequently, the High Court directed the respondents to pay the arrears of GST on the rent from November 2018 onwards within four weeks, along with the rent for November 2018. Failure to comply would result in striking off the respondents' defense. The petitioners were instructed to issue invoices to the respondents for the rents and GST due, with the amounts deposited towards rent and GST permitted to be withdrawn by the petitioners for transmission to the competent authority. In conclusion, the Civil Revision Petition was allowed by the High Court, leading to the closure of any pending miscellaneous petitions without any order as to costs.
|
