Beware if you are getting Rent More than 20 Laks; Revenue Department to share data of Commercial Rent with GST Dept curb GST Evasion

The Government of Haryana notifies that Haryana Revenue Department to share data of Commercial Rent/Lease Deed with Haryana Excise and Taxation Department to curb GST Evasion via press release dated 23.05.2022.

Sh. Pranab Kishore Das, ACS and FCR, and Sh. Anurag Rastogi, ACS (E& TJ) met to discuss the subject of GST evasion in the rental of immovable property other than those rented for residential purposes.

Any rental of immovable property, other than those rented for residential purposes, is subject to 18 percent GST under the GST Act. As a result, any taxpayer with a turnover of more than Rs. 20 lacs who rents immovable property (commercial) is required to register and pay GST. Many people and organisations who rent out buildings for commercial purposes have been observed underreporting or failing to disclose transactions that are subject to GST.

The following was decided in order to prevent such evasion:

1. A regular data sharing mechanism between the Revenue Department and the Excise and Taxation Department must be established. This will include information from previously registered leases.

2. System-based checks, such as capturing the lessor’s PAN/GSTIN during the purchase of an E-Stamp and property registration, will be implemented.

To recover tax on commercial rentals and leasing, the Haryana Excise and Taxation Department will launch a targeted drive against tax defaulters.

For Official Press Release Download PDF Given Below: