Question25: One of my client is having
Residential Rent s. 16,20,000/= and Commercial Rent 12,00,000/= Total Rent
Received 28,20,000/=. Whether GST registration is necessary or not'
Answer: Renting of residential dwelling for use as residence is exempt
from GST vide S.no 12 of Notification No. 12/2017-Central tax and renting for
commercial purpose is a taxable supply under GST.
According to section 23 (1)(a) if you are engaged exclusively in the business of
supplying goods or services or both that are not liable to tax or wholly exempt
from tax under this Act or under the Integrated Goods and Services Tax Act then
not liable for registration. Otherwise as per section 22 you are required to
registration if your " aggregate turnover" exceeds Rs. 20 lakh in a financial
year.
Section 2(6) defines "aggregate turnover' which means the aggregate value of all
taxable supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis), exempt supplies, exports of goods or
services or both and inter-State supplies of persons having the same Permanent
Account Number, to be computed on all India basis but excludes central tax,
State tax, Union territory tax, integrated tax and cess.
Thus according to above provisions aggregate turnover in your case is Rs 2820000
(i.e taxable supply Rs. 1200000 + Exempt supply Rs 1620000) which exceeds Rs 20
lakh . so you are required to registered under GST. (Reply dt. 18/3/2018)