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TMI BlogGST on Notional IncomeX X X X Extracts X X X X X X X X Extracts X X X X ..... A GST registered person gives away commercial space to a trader by taking quite a large amount as refundable deposit. The understanding is the trader will use the space for business purpose for a period of 7 years without payment of any rent, after expiry of 7 years he has to surrender the place back to the Landlord who will return the large deposit received. As per Income Tax Law the landlord ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to pay Income tax on the notional rental income in respect of above arrangement. I would like to know GST implication on the Land lord in the above circumstance. - Reply By CASeetharaman KC - The Reply = As per Rule 27 of CGST Rules when the consideration is not wholly in Money then the following procedure needs to be followed to determine the value of Supply:- Where the supply of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or services is for a consideration not wholly in money, the value of the supply shall,- (a) be the open market value of such supply; (b) if the open market value is not available under clause (a), be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of supply; (c) if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value of supply is not determinable under clause (a) or clause (b), be the value of supply of goods or services or both of like kind and quality; (d) if the value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of consideration in money and such further amount in money that is equivalent to consideration not in money as determined by the application of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 30 or rule 31 in that order. As per the above dictum, the open market value of supply of the rental premises would have to be considered for payment of GST. This could be done by checking the rate at which similar properties are being let out in the same area - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = You may pay GST on the notional rent. - Reply By KASTURI SETHI - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = I support the views of both experts. I would like to add that such notional income is 'consideration' in terms of Section 2(31) of CGST Act, 2017 . It is supply of service as per Schedule-II (Section 7 of CGST Act.2017 . - GST on Notional Income - Query Started By: - Ethirajan Parthasarathy Dated:- 14-2-2019 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Foru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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