90,000+ Legal Questions Answered
How to stop paying GST if the tenant fails to pay rent
4 months ago
Our tenant built a building in the vacant site provided by us and is running a textile retail business there. A rental agreement for 15 years was registered and now 6 years have passed. Due to poor business, he has not paid rent for the past 9 months whereas we have been raising invoices and paying GST. How can we stop raising rent invoice? through arbitration or civil suit? Please advise.
Vidhikarya
A.Dear Client,
Generally, the Goods and Services Tax (GST) should be paid by the landlord on the commercial renting of premises, irrespective of whether the tenant pays the rent or not. However, it is advisable to consult with a legal or tax professional to guide you through the specific rules and regulations in your jurisdiction dealing with the obligations of the landlord and the tenant in such situations. Further, you can file a suit before the jurisdictional civil court and seek the eviction of tenants and payment of pending rent dues.
Hope it helps.
Thank you.
Generally, the Goods and Services Tax (GST) should be paid by the landlord on the commercial renting of premises, irrespective of whether the tenant pays the rent or not. However, it is advisable to consult with a legal or tax professional to guide you through the specific rules and regulations in your jurisdiction dealing with the obligations of the landlord and the tenant in such situations. Further, you can file a suit before the jurisdictional civil court and seek the eviction of tenants and payment of pending rent dues.
Hope it helps.
Thank you.
Helpful
Helpful
Share
A.Dear Client,
If there exists a clause in the rent agreement specifying that the agreement stands terminated for non-payment of rent by the tenant for consecutive months, then serving a legal notice to the tenant, you can file an eviction suit in the Civil Court against the tenant for a decree of eviction. Reach out to an Advocate for steps. As regards GST, it is noted that despite the non-receipt of rent from the tenant, you continue with the raising of GST invoices against the tenant for a long 9 months which may be a tough task to regularise once the monthly GSTR-1 returns are submitted to the authority. As per the GST Act, on raising the tax invoice, the supplier is required to disclose the sale in the monthly GSTR-1 filing and pay the GST tax payable to the Government, even if the customer has not made the payment on the invoice. However, when the customer of goods or services fails to make the payment on the invoice, the supplier can take the following steps to reverse the input tax credit enjoyed by the recipient without making payment. The supplier can take the following steps to reverse the input tax credit enjoyed by the recipient without making payment against the tax invoice. The supplier shall mention the details of invoices for which payment was not received along with GSTIN of the customer at the time of filing the GSTR-2 return required to be filed on or before the 15th of a month. The supplier/taxpayer shall file the GSTR-2 returns within 180 days from the date of issue of the invoice for reversal of input tax credit. Upon the filing of GSTR-2 returns, the amount of input tax credit availed by the customer is added to the output tax liability for the month as per the details furnished. The customer shall then be liable to pay the interest amount for the wrongly availed input tax credit from the period starting from the date of availing credit till the date when the amount is added to the output tax liability. You may visit the office of the GST Council or Commercial Tax office for more clarification to regularise the matter. You may consult with a Tax Consultant for guidance and steps to resolve the issue in the right way.
If there exists a clause in the rent agreement specifying that the agreement stands terminated for non-payment of rent by the tenant for consecutive months, then serving a legal notice to the tenant, you can file an eviction suit in the Civil Court against the tenant for a decree of eviction. Reach out to an Advocate for steps. As regards GST, it is noted that despite the non-receipt of rent from the tenant, you continue with the raising of GST invoices against the tenant for a long 9 months which may be a tough task to regularise once the monthly GSTR-1 returns are submitted to the authority. As per the GST Act, on raising the tax invoice, the supplier is required to disclose the sale in the monthly GSTR-1 filing and pay the GST tax payable to the Government, even if the customer has not made the payment on the invoice. However, when the customer of goods or services fails to make the payment on the invoice, the supplier can take the following steps to reverse the input tax credit enjoyed by the recipient without making payment. The supplier can take the following steps to reverse the input tax credit enjoyed by the recipient without making payment against the tax invoice. The supplier shall mention the details of invoices for which payment was not received along with GSTIN of the customer at the time of filing the GSTR-2 return required to be filed on or before the 15th of a month. The supplier/taxpayer shall file the GSTR-2 returns within 180 days from the date of issue of the invoice for reversal of input tax credit. Upon the filing of GSTR-2 returns, the amount of input tax credit availed by the customer is added to the output tax liability for the month as per the details furnished. The customer shall then be liable to pay the interest amount for the wrongly availed input tax credit from the period starting from the date of availing credit till the date when the amount is added to the output tax liability. You may visit the office of the GST Council or Commercial Tax office for more clarification to regularise the matter. You may consult with a Tax Consultant for guidance and steps to resolve the issue in the right way.
Helpful
Helpful
Share
A.Dear sir,
you may get a notice of eviction for not paying rents. You may file interim application in eviction suit asking him to deposit the dues and pay regular rent failing which court will pass eviction order summarily.
you may get a notice of eviction for not paying rents. You may file interim application in eviction suit asking him to deposit the dues and pay regular rent failing which court will pass eviction order summarily.
Helpful
Helpful
Share
Read Related Answers
Importing sex dolls in india
Dear client,
In your case importing sex dolls into India presents considerable legal hurdles due to strict regulations on materials deemed obscene or explicit. Relevant laws include Section 292 of the...
Custom clearance
Dear Client,
If undeclared foreign currency is found in your parcel, it can lead to serious legal implications under Indian law. The Customs Act, 1962, governs the import and export of goods, includin...
Gel blaster in customs
Dear Client,
The customs clearance of your gel blaster toy gun, especially if it closely resembles a real firearm. The seller is expressing concern and asking you to handle the clearance.
Research...
Civil suit S C Suit No 4910 of 2021 & S C Suit No 1126 of 2022
Dear sir
Before giving any legal advise it is better to share all the documents in person either with me or any other nearest advocate to get effective legal advise.
Recvd Call letter-cum-cause show notice dated 26th Nov 2021 today
Dear Sir,
Section 111 in the Customs Act, 1962 Penalty of five thousand rupees
111. Confiscation of improperly imported goods, etc.—The following goods brought from a place outside India shall be li...
Read Blogs on Customs, Excise
Customs, Excise Lawyers
Find Lawyers by Location
