If the Property held jointly then GST registration limit for co-owners of a property to be checked individually and not as whole

If the Property held jointly then GST registration limit for co-owners of a property to be checked individually and not as whole




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If the Property held jointly then GST registration

limit for co-owners of a property to be checked

individually and not as whole

[Elambrancheri Khaldoon, In re – [2018] (AAR-Kerala)]

According to registration provision of the GST act, if the Turnover limit exceeds more 20 lakhs then the person is required is to take registration at that time. The question is whether rental income from property would be counted as propertywise or personwise?

Facts of the case:

  1. In the case, Assessee is one of the co-owner of a jointly owned immovable property.
  1. There are 13 coowners holding equal share of land and building. They had given the property on rent. Rent of such property was exceeds more than 20 lakhs in the financial year
  1. Assessee filed an application for Advance Ruling whether small business exemption would be available to all owners separately in case of joint owned property or not?

 

Held:

The following observation were made by the Authority and passed the judgment:

  1. When the rent is collected together and divided equally between respective co-owners, then the small business exemption for registration under GST is available to co-owners separately
  1. And in the given case only propertywise rental income is exceeds more than 20lakh. But if it is counted personwise then such income would not crossed the basic exemption limit provided by the act
  1. This is big relaxation to all joint co-owners from GST registration until and unless their rental and other taxable income does not exceeds more than 20lakhs.
  1. This judgment is beneficial to all joint coowners.




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