Dear Sir, I have a proprietorship concern. I am registered under GST. I also have given a shop on rent. GST is charged on rent. I have told the tenant to give rent for the month of April & May’2020 in July or August. Query- Can I issue a consolidated Tax Invoice for rent of the month April & May’2020 when Rent is received as There is no Output tax in these months due to Covid ??
2) If not, pls tell any way out, so that I pay tax for these months when rent is received ??
3) Generally, I pay Tax Invoice in each month to tenant. Query- My Advocate has advised has in FY -19-20 , I can issue tax invoice to my tenant on Quarterly Basis i.e. for July-Sept in Aug or Sept. Pls clarify can i do so ??
Renting is basically a continuous supply of services and thus the raising of invoice will be governed by the rent agreement. In case the contract mandates quarterly issue of invoice you raise accordingly and pay tax.
However if the contract mentioned of monthly, you need to raise on monthly basis. However due to COVID-19 you may sign an amendment to rent agreement and can provide for quarterly invoicing. This will obviate any future litigation with Deptt.
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