• Gst applicable on rent of rooms in hospital

an ayurveda hospital is located in himachal - hospital consists of opd , and rooms for patients to stay .. hospital is run by a no profit organisation and a lease agreement is done between owner of building and the organisation which runs the hospital . room rent charged by operator to patients  is exempted from gst . now after receiving room rent 20 percent goes to operator and 80 percent goes to the owner of building as lease .. amount of rent is more than 20L a year . 


in this case when owner receives his share of 80% will it attract Gst on his share of lease ?  how will he pay when operator is not charging from patient ?
Asked 9 months ago in GST from Baddi, Chandigarh
GST is applicable on his portion. He should chage GST on that.
Vidya Jain
CA, Kolkata
607 Answers
13 Consultations

4.8 on 5.0

Hospital rendering services to patient is exempt. But for the owner  renting its pproperty is taxable. It's irrelevant how the lease term has been designed. 

is the owner single or joint?
Vidya Jain
CA, Kolkata
607 Answers
13 Consultations

4.8 on 5.0

no.. then its liable to GST
Vidya Jain
CA, Kolkata
607 Answers
13 Consultations

4.8 on 5.0

Hi

GST cannot be avoided. Since the annual rent exceeds Rs. 20 lakhs, GST has to be paid in cash.
Lakshita Bhandari
CA, Mumbai
1849 Answers
55 Consultations

5.0 on 5.0

Yes, the owner of the property will have to pay GST if it exceeds 20 lacs.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
3287 Answers
149 Consultations

5.0 on 5.0

Hello,

The land owner will charge GST @ 18% to the operator no matter if the operator is charging GST or not. So technically it will be a cost to the hospital.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Hi,

If the rental income is more than 20 Lacs then GST will have to be charged on the same. There is no other option to it.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

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