Commercial rental income above Rs 20 lakh will attract GST
Under the new GST regime it is certain that the government has exempted income from commercial rentals. In case the income exceeds Rs 20 lakhs in value then it is eligible for GST. This is true for anyone who earns this amount by lease or rental for commercial use.
Key Factors under the GST regime for rental properties
- According to the statements made by Hasmukh Adhia (Revenue Secretary), it is certain that if you plan to rent your residential property for commercial or office use then no GST will be imposed if the rentals does not exceed Rs 20 lakhs annually.
- Apart from this if you are leasing out your residential property for residential purpose then it is not eligible for GST under the new regime.
- In case you are planning to lease it out for commercial use to any enterprise then the tax shall be calculated if the rental amount exceeds Rs 20 lakhs in value annually.
- If any person who is a tax payer and is earning rental amount that exceeds the threshold amount then it is certain that he may have to get registered for GST and deposit the tax amount.
Effects of the new implementations
- Once announced, it is certain that over 69.32 lakh property owners, VAT, excise and service tax payers have managed to get registered to the GST web portal. According to earlier stats over 80 lakh tax payers were registered under the previous system.
- It is also certain that nearly 38.51 lakh tax payers out of 69.32 tax payers have successfully completed the process of registration. They have also acquired a certification issued by the government under GST.
- Other 30.8 lakh tax payers have been communicated via emails and sms so that they can complete their process of registration under GSTN. They are expected to provide with complete details of their business enterprise including address, promoter’s details and other place of business.
Date of registration for tax payers
- It is expected that around 4.5 lakh new tax payers still have to get registered and so GSTN portal shall provide them with all possible details on the web portal by 17th July 2017.
- The date of registration for these tax payers will also be open for them by 17th July 2017 online.
In case you are looking forward to cancel the registration then you can log on to the web portal and do it online.