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Soon, GST on rent from non-residential buildings - GST Station

Soon, GST on rent from non-residential buildings

Soon, GST on rent from non-residential buildings

    Revenue dept. assessing buildings

    The Commercial Taxes wing of the Revenue department is looking at augmenting its revenue by ensuring effective collection of the Goods and Services Tax (GST) in areas that remained uncovered so far.

    The department has embarked on assessment of buildings, specifically non-residential ones, leased/rented out by owners, within the GHMC jurisdiction, as it could result in huge income to the State Government. The department has so far mapped 7,064 buildings under the GHMC limits which were remitting property tax to the tune of ₹482 crore annually.

    Senior officials said that an analysis was underway to ascertain how many of these buildings have been given on a rental basis for non-residential purposes so that an assessment could be made on rents being collected through them. Data collected by the department revealed that there were 120 buildings that were paying property tax of more than ₹50 lakh annually to GHMC with the total collection amounting to ₹137 crore.

    “We are doing an analysis about the rental component involved in the properties that are being utilised for non-residential purposes. If these buildings are given for rental purposes, we should get the GST on that,” a senior official told The Hindu.

    Once the assessment of the rental component is completed, the department could collect GST to the tune of 18 per cent on the quantum of rent that is coming from these properties. Given the fact that rent collected are much higher than property tax that is being paid on these buildings, the department is hopeful of collecting over ₹200 crore annually in the form of GST on rent, the official said.

    Source- The Hindu.

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