• Does an individual pay GST

Sir/madam, 

my friend constructed 8 housing units (2 units on each floor) 1 in a residential plot and is Renting the same to M/s OYO who in turn will be renting it out as Paying guest accommodation.

My friend is a software professional working for a MNC.

the annual rent from the property paid by OYO is around INR 18 lakhs.

Does my friend have to pay GST on the rent.. Please advise

Venkateswara Rao
Bangalore
Asked 5 years ago in GST

Hi,

 

Assuming professional income of your friend is in the nature of salary and not in the nature of consultancy fees, you friend does not cross the threshold of 20 lacs for gst applicability.

 

Hence, he need not registered in the GST .

Lakshita Bhandari
CA, Mumbai
5687 Answers
911 Consultations

5.0 on 5.0

Does he have any other receipt other than this?

The income from MNC is in form of salary or professional fees?

If it's salary no need to register under GST if not salary register under GST and pay GST on rent.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4279 Answers
98 Consultations

5.0 on 5.0

- In case of services, threshold limit is Rs.20 lacs. Once it crossed it then you need to obtain GST registration and collect GST from the OYO.

 

- If GST is already obtained then you need to collect it irrespective of turnover.

 

- Assuming he is getting salary from the MNC.

Vivek Kumar Arora
CA, Delhi
4856 Answers
1048 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

He will be liable to obtain GST registration only if the turnover/receipts crosses the threshold limit of Rs. 20 lacs (Assuming he is an employee getting salary from the company). 

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
290 Consultations

5.0 on 5.0

Hello,

 

If your friend is working as an employee for the MNC, then he would be liable for GST registration only if his total rental receipts crosses Rs. 20 Lacs.

Otherwise, if he has already taken registration, then he has to pay GST on rent.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Hello Sir,

 

Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. 

 

So, he is not required to get GST registration.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi

 

If turnover cross the threshold of 20 lacs then you have to take gst registration and collect gst.

 

Hope it helps 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

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