Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Gst rental invoice on rental income less than 20 lakhs

Querist : Anonymous (Querist) 05 November 2017 This query is : Resolved 

I would like to know if it is mandatory to issue GST Rental Invoices every month, when the rental income aggregate is less than 20 lakhs per year, since GST is not applicable in this case.

This is for properties located in Delhi, and Punjab.

Thank you.
Rajendra K Goyal (Expert) 05 November 2017
No advice to an author who is anonymous.

You can post the query in fresh thread with your identity and material facts.
Querist : Anonymous (Querist) 07 November 2017
I had hoped to find the answer to this, while ensuring privacy on a public website. As expected, this page shows up on Google, if an answer to this query is searched for.
Ms.Usha Kapoor (Expert) 08 November 2017

As per schedule I supply of service without consideration to related/ distinct person will be treated as supply. Admitting a person into a premises for “consideration” alone can be treated as business under Sec 2(17)(f). It is not clear whether schedule I can override section 2(17)(f).
As per Section 9(4), the registered taxable person, who receives goods or service from unregistered person, the receiver, will have to discharge the tax liability. Strangely, the word service or good “received in the course or furtherance of business” is not used in this section.
This leads us to conclude that an individual paying tax on renting of immovable property has to pay tax under RCM on all goods and service received by him from unregistered even for personal use. Unfortunately no input tax is available on such tax. This not only puts a burden on inflow but the said individual has to prepare self invoice and also file return for the same. To avoid the hazels, he may have to deal with register persons only, but still has to upload such transaction in his monthly return without claiming input tax credit.
Let us take the case of a small trader (proprietor) or an individual having taxable rental income but whose turnover is below 20 lakhs
He need not get himself registered under GST. Assuming such person pays some legal fees to advocate, and then he has to get himself registered for purpose of paying GST under RCM even though his turnover is below threshold limit, his is as per section 9(5) of CGST Act. Once he becomes a “registered person” under GST, the provisions section 9(4) is also attracted, which means he has to pay tax under RCM ON ALL goods/ service received from a unregistered persons resulting in undue hardship in payment of tax under RCM (with no ITC) and also need to generate self invoice and upload the same in monthly return.
An individual may be residing in one state and having immovable property in another state. Controversy has already started whether he has to pay IGST or CGST in the state where property is located.

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