CA Harshit Tripathi     31 May 2021

According to the GST Act, renting out of an immovable property would be treated as a supply of services. GST, however, will be applicable only to certain types of rent such as:

When a property is given out on lease, rent, easement, or licensed to occupy
When any property is leased out (or let out) including a commercial, industrial, or residential property for business (either partly or wholly)

So if you are well below threshold limit of 20 lacks you don't have to issue a GST invoice.

If you will raised him GST invoice he'll book ITC for the GST part of the invoice and will further use it for paying his GST output liability.
For any other clarification or Querrey reach me at caharshittripathi@gmail.com or call at +91-9696059794.
Thanks & Regards.

CA Rahul Dwivedi     1 Jun 2021

GST is not applicable in case of renting of residential house however in case of commercial property GST is applicable provided it cross the threshold limit. In your case it is below the limit so no need to issue GST invoice. Alternatively you can give a declaration to your tenant regarding the same.
For further discussion you can reach us on carahuldwivedi@gmail.com or 9004485377

CA Aditya Dhanuka     1 Jun 2021

The tenant is insisting you to raise GST invoice so that he can claim ITC of the said GST paid to you and utilise it to set off his output liability, however he is missing a fundamental understanding that whether you raise a GST invoice or not, his cash flow will remain same, since if he pays you GST then he claim ITC to that amount, and if you are not charging GST, then his output will not be reduced to that extent and he has to pay that portion additional in cash. However in both scenarios, i.e. whether you raise a GST invoice or not, he will paying the same sum either to you or directly to the government, so his insistence does not carry much weight, provided your total value of supply during the year does not exceed INR 20 Lakhs.
Please note that your limit has to be seen from your total billing/receipt perspective and not from the view of billing done to each person.

Please advise in case of any further clarification.

Thanks & Regards,

CA Aditya Dhanuka.

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CA Deepak Kucheria     31 May 2021

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CA Rahul Dwivedi     31 May 2021

Please let us know your specific requirement, will assist in that.
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CA Hunny Badlani     31 May 2021

Yes, you can contact us at badlaniassociates@gmail.com

CA Harshit Tripathi     31 May 2021

Sure book an appointment at caharshittripathi@gmail.com or contact us at 9696059794

CA Naman Maloo     6 Jun 2021

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