XYZ (Proprietor) had given a commercial office on rent to PQR Pvt. Ltd. XYZ is charging GST on the Rental income to PQR. XYZ is paying property tax and the same is also recovered from PQR at actuals. Is XYZ required to charge GST on property tax recovered also or only on rent?
Frah Saeed Answered question September 27, 2020
Property tax will also be subject to GST, as only GSt is excluded from value of supply. Recently AAR ruling on same has also been issued on the issue inter alia adjudging that property tax cannot be deducted from value.
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Frah Saeed Answered question September 27, 2020