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 13 days ago in GST from Baddi, Chandigarh
GST is applicable on his portion. He should chage GST on that.
Vidya Jain
CA, Kolkata
407 Answers
4.0 on 5.0
  Talk to Vidya Jain
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
407 Answers
4.0 on 5.0
  Talk to Vidya Jain
no.. then its liable to GST
Vidya Jain
CA, Kolkata
407 Answers
4.0 on 5.0
  Talk to Vidya Jain
Hi

GST cannot be avoided. Since the annual rent exceeds Rs. 20 lakhs, GST has to be paid in cash.
Lakshita Bhandari
CA, Mumbai
587 Answers
5.0 on 5.0
  Talk to Lakshita Bhandari
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
2081 Answers
5.0 on 5.0
  Talk to Abhishek Dugar
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
1837 Answers
5.0 on 5.0
  Talk to Rohit R Sharma
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
656 Answers
5.0 on 5.0
  Talk to Keerthiga Padmanabhan

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Lakshita Bhandari
CA, Mumbai
587 Answers
5.0 on 5.0
Abhishek Dugar
CA, Mumbai
2081 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
1837 Answers
5.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
656 Answers
5.0 on 5.0
Lalit Bansal
CA, Delhi
418 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
407 Answers
4.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
666 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
598 Answers
5.0 on 5.0
Pradeep Bhat
CA, Bengaluru
367 Answers
5.0 on 5.0
Shiv Kumar Agarwal
CA, Delhi
227 Answers
5.0 on 5.0