Good news for owners of residential properties. Residential owners are now free from paying GST for receiving rental income from their properties. There will be no tax payment up to 20 lakhs for properties given for rent or lease in both residential and commercial properties. If the income of any property income is more than 20 lakhs, then the GST law will apply to pay the tax.
On 10 July 2017 Hasmukh Adia a Revenue Secretary announced up to 20 lakhs rental income. GST laws will be applicable only when these rental revenues exceed Rs20 lakhs and above. Those who are earning rental income above than this amount has to register in GST laws and should pay the tax.
"As many as 69.32 people have registered under the service tax and Vat in the GSTN portal" informed the Chief Executive of GSTN, Prakash Kumar. In the past, there are up to 80 lakhs indirect property taxes, out of which only 38.51 lakhs properties have registered and had issued certificates.
The process of new registrations is ongoing with 4.5 lakhs new properties in GSTN from June 25, 2017, onwards. The people who are not on the registration list i.e. 30.8 lakh property tax payers have to give information about their place of business, details of promoters, etc.; these people get alerts in the form of SMS and Emails by the GSTN to finish their registration of business and get certificates issued for their business.
All the Property owners have to register in this GSTN portal and give information about their business by or before 17 July 2017. There will be registrations for GST professionals on the same day we can also cancel the registrations online as well.