Yes any business turnover above 40 lakhs will attract gst
Is there any gst applicable if i make a pvt ltd firm
Hi in Mumbai there are many companies who run paying guest business ,their model is they take a apartment in a housing society ,registered agreement with the owner in that they put clause that they will further give this whole flat for residential use ,furnished it and give it bed wise and sharing basis but they are not giving any service like food ,laundry ,cleaning ,electricity or maintaince in cluding in rent every thing is paid by the respective guest are they liable to pay gst ,or charge gst ,they have many apartments in different localities under same company
Asked 6 years ago in Taxation
11 Answers
GST has to be paid by companies running paying guest business
if you are running a hotel business and issuing the invoices to the customer you can take the GST number and registered your form in goods and services tax you can collect the GST E and issue GST invoice to your customers so that they can take benefit of GST in their organisations as well as you can also weather the venue today GST department this is good and logical way of working
It is supply of services therefore GST shall be levied. Though rent on residential property is out of the GST preview.
but my c a is saying that it comes under negative list ,as it is for pure residential use and no service is given ,and if gst is applicable then on which amount i have to pay ,like the rent of a two bhk apartment is 45000/- which my pvt ltd firm will be giving to the owner after deducting tds if any and if we write this 45000/- rent includes gst ,and i will be charging to the clients like 65000/- so i have to pay gst on full 65000/- or only on 20000/- as i have written in the agreement with owner that 45000/- includes gst if any
Asked 6 years ago
Since all.flats are residential no gst is applicable as mentioned above sir though it is supply of service it is exempted from.GST you do not have to pay any gst for residential rent .
so as per your opinion it doesn't come under supply of service,as my c a is also of same opinion and very much sure that if i form a pvt ltd company and start this business and only give rent to the owner, after doing agreement with the owner and take rent from the client after doing agreement with the client for 12 months with out giving any service and sir is it legally right as per police and court as if any guest do something wrong like drugs ,or terrorist activities how will company directors be safe.
Asked 6 years ago
If you are going to use the apartment only for the residential purpose not for the hotel accommodation then you can use this model otherwise you have to go for GST registration and then only you can use your apartment as residential Hotel Apartment please rate this answer if you like it
Payment of GST or collection of GST shall depend on the annual turnover which is more than Rs. 20 Lakhs per annum.
If your CA is expressing that this may not fall under GST category, you may have to see that if the same is under your firm's name, then it may attract GST.
The GST shall be payable on the turnover.
If it is just a rental agreement for residential purposes and do not cover any service then it may not attract GST
See in agreement it can be clearly mentioned that for any illegal activity tenant is responsible further for every sub tenant there must be police verification.
You don't have to pay gst on exempt service