Question23: My query regarding GST is as under :
I am not paying any rent to my wife who is owner of the office I am using for my business but paying rent of Rs.100000/- pm towards the Godown which also property of my father. Now, in the month of Mar.2018, I realised that :
a) I am not paying rent to my wife and market rent of the shop is Rs.300000/- pm and b) the rent I am paying my father Rs.100000/- is less than the prevalent market rent of Rs.500000/-
Now I want to paying due rent to my wife since July.2017 to Mar.2018 and to my father the difference amount, pl advise :
1.How I will correct my GST Returns
2.What will be the penal charges will payable under GST

Answer: Your decision is very wise considering the present position of Clause 2 of Schedule I to the CGST Act read with Rule 31 of CGST Rules, 2017. According to the Clause 2 of Schedule I, supply of goods or services or both made between related persons when made in the course of furtherance of business is to be treated as supply and will be subjected to tax under GST.
In your case your wife as well as your father are service providers. Since their respective turn over is exceeding Rs. 20 lakh in a financial year they are required to be registered under Section 22 of CGST Act, 2017 and discharge their respective tax liability along with interest and file returns. Once they discharge their respective tax liability you will be able to take ITC of the tax amount charged from you in their respective tax invoices.
(Reply dt. 14/3/2018)