Question
In case rent of a person is 17 lakhs during FY 17-18 and 21 lakhs during FY 18-19. Whether GST is payable on 1 lakh or 21 lakhs where GST registration was taken after the turnover crossed 20 lakhs during 18-19?

Answer

Facts of the case:
GST Registration is taken when Rental receipts exceeds 20 lakhs during FY 18-19, whether GST is to be paid on 1 lakh or 21 lakhs.

Law Applicable:
SECTION 22 OF CGST ACT
(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Notification No. 12/2017- Central Tax (Rate)

Interpretation:
As per section 22 a person becomes liable to get registered once its aggregate turnover exceeds 20 lakhs, therefore you are liable to pay tax once you get registered i.e. on 1 lakh and not on turnover of 20 lakh which you have received before registration.

Further Services by way of renting of residential dwelling for use as residence is exempt.

Conclusion:
You are liable to pay tax on rental receipts of 1 lakh

(Reply dt.27/06/2019)