Is GST chargeable on small Government lease rentals?
Is GST chargeable on the rent of immovable property leased by the Government where the rent amount is up to ₹5,000? Kindly clarify the applicability of Serial Nos. 9 and 12 of Notification No. 12/2017–Central Tax (Rate), dated 28 June 2017.
Dear Client, The applicability of GST will depend on the nature of the lease, the purpose for which the property is leased and whether the conditions for exemption under Notification No. 12/2017–Central Tax (Rate) are satisfied. Merely because the lease rent is ₹5,000 or less does not automatically make it exempt in every case. The lease agreement and the relevant facts must be examined before giving a final opinion. Hope this helps. Please feel free to reach out to us if you have any further queries or need assistance
The applicability of GST depends on the nature of the immovable property, the status of the recipient, and whether the transaction falls within the exemptions provided under Notification No. 12/2017–Central Tax (Rate). You should carefully examine the relevant entries and facts of the transaction with GST Commissioner/officer of your local area. For further legal assistance, contact us on our helpline number.
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