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All QuestionsCategory: GST CompliancesThe tax rate applicable for rents income
Profile photo of Kollipara sundaraiahKollipara sundaraiah asked 3 weeks ago

The tax rate applicable for rents income

A person composite scheme registered in the GST act maintained a medical shop.
 
1.sales of medicines turnover from April to December 2019 Rs.25,00,000/- and composite tax  Rs.25000/- 1% paid.
2. Same person income from commercial rent for the shop.
April to December 2019 Rs.45000/- rent received.
Doubt for income from rent GST applicable and which rate of tax applicable(1% or18%)

Answer the question
1 Answers
Profile photo of Nikhil S BohraCA Nikhil S Bohra answered 3 weeks ago

Rent income if arises on account of residential income its exempt from GST.
In the rent income is from other than residential property then same is liable to GST,
Composition scheme mentions than only those person whose aggregate turnover is below Rs 1.5crs can opt for Composition scheme.
In current case it is well below Rs 1.5 Cr.
Now the question comes about the rate of tax.
Aggregate turnover includes all taxable supplies.
Since rental income is a taxable supply and registered person is under composition scheme, tax will be charged at 1% only. 18 % rate is for the registered person other than composition scheme