Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

GST on Rental Income, Goods and Services Tax - GST

Issue Id: - 114329
Dated: 20-11-2018
By:- Ethirajan Parthasarathy

GST on Rental Income


  • Contents

Due to litigation between landlord of commercial property & tenant, the rents were not received. Civil suit for eviction is likely to be filed.

Is landlord liable to pay GST under the above circumstances.

One view could be that the landlord has to pay GST atleast to the extent of rental deposit already received. Is this view correct. What will be the situation after fully setting off the rental deposit.

Posts / Replies

Showing Replies 1 to 7 of 7 Records

Page: 1


1 Dated: 20-11-2018
By:- KASTURI SETHI

This is an extract of FAQ dated 31.3.17

Q4. What are the necessary elements that constitute supply under CGST/SGST Act?

Ans. In order to constitute a ‘supply’, the following elements are required to be satisfied, i.e. -

(i) the activity involves supply of goods or services or both;

(ii) the supply is for a consideration unless otherwise specifically provided for;

(iii) the supply is made in the course or furtherance of business;

(iv) the supply is made in the taxable territory;

(v) the supply is a taxable supply; and

(vi) the supply is made by a taxable person.

Without consideration, you are not liable to pay tax.


2 Dated: 20-11-2018
By:- DR.MARIAPPAN GOVINDARAJAN

If deposit is adjusted against the rent-in-arrears, then GST would be payable.


3 Dated: 21-11-2018
By:- Ethirajan Parthasarathy

Dear Doctor,

Thanks for your reply. Can you little elaborate what will be the position after rental deposit is fully adjusted & tenant has neither vacated nor paying rent


4 Dated: 21-11-2018
By:- KASTURI SETHI

There is not an iota of doubt about leviability of GST on rental deposit. It is an advance. Dr.Govindarajan Sir has rightly opined.


5 Dated: 21-11-2018
By:- YAGAY andSUN

It will be treated as payments made in advance (i.e.deposits) and adjust accordingly. Hence liable for charging of GST.


6 Dated: 21-11-2018
By:- Ganeshan Kalyani

When the deposit was received it was not taxable as it was not for the service rendered or to be rendered. But when it is adjusted against the rent to be receivable but not received then it looses its identity as a deposit and it takes the name of rent. Hence, when the deposit is adjusted with the unrealisable rent it is subject to GST.


7 Dated: 28-11-2018
By:- Mohit Chauhan

I guess it's applicable to certain types of rent such as:

1. If the property is given out on lease, rent or licensed to occupy

2. If the property is leased out for commercial purposes, industrial or business property

But in your situation I don't think you are liable to pay GST. Hope this was helpful at all.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates