The Haryana government combating the GST avoidance, will exchange data regarding business rent or lease documents with the Haryana Excise and Taxation Department.
Pranab Kishore Das, ACS and FCR, and Anurag Rastogi, ACS (E & T), met to talk on the topic of GST avoidance in the rental of immovable property excluding those rented out for the residential causes.
Under the GST Act, any renting of immovable property, other than those rented out for residential purposes, are chargeable to 18% GST. Therefore, any taxpayer with turnover above Rs. 20 lacs providing renting of immovable services(commercial) are supposed to be registered and pay GST. It has been observed that many individuals and institutions who are renting out properties for commercial purposes are under reporting or not reporting such transactions on which GST is applicable. In order to curb such evasion, the following was decided: –
- Regular data sharing protocol shall be set up between the Revenue Department and Excise and Taxation Department. This shall include data of the past registered leases.
System based checks will be introduced such as recording of PAN/GSTIN of the lessor during purchase of E-Stamp and property registration.
- The Haryana Excise and Taxation Department will initiate a special drive against the tax defaulters to recover tax on Commercial Rentals and Leasing.
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