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Published on:
March 21, 2023
By
Prudhvi Raj

Place of GST Registration for Renting of Immovable Property

Under the Goods and Services Tax (GST) regime in India, the place of registration for renting of immovable property depends on the location of the property being rented out.

If the property is located in the same state as the registered office of the landlord, then the landlord will be required to obtain GST registration in that state and pay GST on the rental income generated from the property.

However, if the property is located in a different state than the landlord's registered office, then the landlord will need to obtain registration in that state and pay GST on the rental income generated from the property.

In case the landlord is not registered under GST and the property is located in a state where GST registration is mandatory for rental income, the landlord is required to obtain registration and pay GST on the rental income generated.

It is important to note that the rental income from immovable property is considered as a taxable supply under GST, and hence, the landlord is required to comply with all the relevant provisions of the GST law, including registration, payment of tax, and filing of GST returns.

In conclusion, the place of GST registration for renting of immovable property depends on the location of the property being rented out. If the property is located in the same state as the landlord's registered office, the landlord should obtain registration in that state and pay GST on the rental income. However, if the property is located in a different state, the landlord should obtain registration in that state and pay GST on the rental income.

In addition to the above, it is also important to note that GST is applicable only on the rental income generated from commercial properties, and not on rental income from residential properties. Therefore, if the property being rented out is a residential property, the landlord does not need to obtain GST registration and pay GST on the rental income.

Furthermore, if the landlord is renting out multiple properties located in different states, they will need to obtain separate GST registrations in each state where the properties are located and pay GST on the rental income generated from each property.

It is also important to maintain proper documentation and records of the rental transactions, including invoices, rental agreements, and other relevant documents, as these will be required for GST compliance, including filing of GST returns and audits.

Finally, it is recommended that landlords seek the advice of a qualified tax professional to understand the specific GST provisions and requirements applicable to their rental income, and ensure compliance with the GST law.

FAQs

Here are some frequently asked questions (FAQs) related to the place of GST registration for renting of immovable property:

Q: Do I need to register under GST if I am renting out a residential property?

A: No, GST is not applicable on rental income generated from residential properties. Hence, if you are renting out a residential property, you do not need to register under GST.

Q: I am a landlord based in Delhi and renting out a property in Mumbai. Where do I need to register under GST?

A: Since the property is located in Mumbai, you will need to obtain GST registration in Maharashtra and pay GST on the rental income generated from the property.

Q: Do I need to register under GST if my rental income is below the threshold limit of Rs. 20 lakhs?

A: If your rental income is below the threshold limit of Rs. 20 lakhs, you are not required to register under GST. However, if the property is located in a state where GST registration is mandatory for rental income, you will need to obtain registration and pay GST on the rental income generated.

Q: Can I claim input tax credit (ITC) on GST paid on rental income?

A: No, landlords cannot claim input tax credit (ITC) on GST paid on rental income, as the rental income is considered as a non-business activity under GST.

Q: I am renting out multiple properties located in different states. Do I need to obtain separate GST registrations for each property?

A: Yes, if you are renting out multiple properties located in different states, you will need to obtain separate GST registrations in each state where the properties are located and pay GST on the rental income generated from each property.

It is important to note that the GST provisions and requirements related to renting of immovable property are subject to change, and landlords should seek the advice of a qualified tax professional to ensure compliance with the GST law.

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