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GST on Notional rent, Goods and Services Tax - GST

Issue Id: - 112832
Dated: 17-9-2017
By:- kamalakara ks
GST on Notional rent

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Industrial building given on lease basis . Lease amount is ₹ 600 lacks interest free deposit which is refundable after the expiry period of 6 years . No monthly rent . How valuation of rental income for the purposes of GST payment . How GST invoice to be issued. How tenant take GST credit as he is not paying monthly rent .

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Showing Replies 1 to 6 of 6 Records

1 Dated: 17-9-2017
By:- Rajagopalan Ranganathan


According to Section 7 (1) (a) of CGST Act, 2017 " the expression “supply” includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business."

Normally whatever amount you earn by investing ₹ 600 lakhs will be treated as deemed rent and on this amount you have to pay gst. However you seek the assistance of a Cost Accountant to calculate the deemed rent accrued to you.

2 Dated: 18-9-2017
By:- Himansu Sekhar

Open market value,

3 Dated: 19-9-2017

I endorse the views of Shri Ranganathan.

4 Dated: 19-9-2017
By:- Himansu Sekhar

There is no scope of credit as you are not raising any invoice . valuation will be done as per valuation rules.

5 Dated: 21-9-2017
By:- kamalakara ks

Thanks to all ,but question is how tenant can take credit on notional rent . The land lard will pay GST on market value of rent , How Invoice to be raised. in case land lard issues a invoice ,can tenant can take credit as he is not accounting notional rent in his books of accounts

6 Dated: 25-9-2017
By:- Ramaswamy S

Dear Sir,

Treat as advance. Prepare Receipt Voucher and charge GST. When the Amount is returned, prepare Refund Voucher and the tax is refunded.

No credit is allowed.




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