398 October 20 To October 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 43 u^40
Your Queries
Goods and Services Tax
(Contributed by CA Mohammad Salim)
GST registration limit for co-owners of a
propertyI alongwith my brother have a jointly
owned commercial property which we
have let out at a rental of ` 30 lakhs
per annum. The share of myself and my
brother in said property is 50% each. For
administrative convenience the rent of ` 30
lakhs is collected together, but divided
equally, i.e., ` 15 lakhs each amongst
myself and my brother. Whether both of
us need to obtain registration and pay
GST?. We are not supplying any other
goods or services.A
s per Section 22(1) of the CGST Act,
2017 every supplier shall be liable to
be registered in the State or Union territory
from where he makes a taxable supply of
goods or services or both, if his aggregate
turnover in a financial year exceeds ` 20
lakhs. This limit of aggregate turnover is
per person. As in this case you are notengaged in supply of any other goods or
services, the aggregate turnover of yourself
and your brother will be ` 15 lakhs each and
being below the threshold exemption limit,
you both will neither be required to obtain
registration nor pay GST.
Authority for Advance Ruling (AAR) – Kerala
in its recent ruling [2018] 98 taxmann.com
159 (AAR - KERALA) has adjudged that a
co-owner holding immovable property jointly
with other co-owners, but receiving lease
rent separately, in proportion to his shares
in the property, is eligible for the benefit
of threshold exemption. Co-ownership of
property is for financial, administrative and
family reasons. The rent is collected from
all the parties together and divided equally
and transferred to the bank account of each
co-owner. If the individual receipt of a co-owner
from all his business, including ‘renting of
immovable property’ exceeds ` 20 lakhs in
a financial year, the person has liability to
register under section 22.