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TMI BlogGST on rentX X X X Extracts X X X X X X X X Extracts X X X X ..... Landlord leasing commercial property earning more than Rs.20 lakh rent per annum. Under which GST scheme landlord should register - regular or composition? Please answer with reasoning and reference along with caselaw would help. - Reply By VENU K - The Reply = If the landlord opts for composition scheme he is not allowed to collect tax from tenants and he will have to pay 6% tax from his pocket. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If he opts for regular scheme he can collect 18% GST from tenants and he will not have to incur any expenditure from his pocket. Generally many small and unregistered tenants would refuse to pay any GST. They will agree for a lumpsum amount as rent... GST or no GST. In such situations it will be better for landlord to opt for composition and pay 6 percent instead of 18 percent. - Reply By Atul Sab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oo - The Reply = Sir, Thank you for the reply. Is the landlord leasing commercial property and earning rent qualify as: a) service provider or b) a supplier of services under GST? Can a supplier of services qualify to register under the GST Composition Scheme? - Reply By KASTURI SETHI - The Reply = Answer to both questions is yes. The major loss in opting for composition scheme is that the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provider (supplier) cannot take ITC and the service recipient (taxable person) cannot take ITC. - Reply By Padmanathan Kollengode - The Reply = I agree with detailed views of Ld. Venu Ji in Post 1. Query 2: Yes, A person engaged in supply of service is eligible for composition scheme under Section 10(2A) of the CGST Act . As far as ITC is concerned, in case of renting of property it is generally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that ITC is very less. Mostly, ITC maybe available on some AMC or Security charges etc. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of the expert. - Reply By Shilpi Jain - The Reply = There are good number of conditions applicable for a person being a composition taxpayer. Ensure all those conditions are satisfied. Also whenever any of the conditions of composition scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not satisfied, one will have to pay GST under regular rates. This also has to be tracked and kept in mind. Unless your tenant is not eligible for credit, suggested not to opt for composition scheme. - GST on rent - Query Started By: - Atul Saboo Dated:- 26-7-2024 Last Replied Date:- 1-8-2024 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st 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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