After the GST rollout on July1, you are aware about tax levied on various products. But what about other tax charges on multi-varied transactions like gift or Income from rents.
The GST implementation has boosted the economic processes in the country. From sclaing up logistics companies’ operations to elimination of check posts in 22 states.
In all, it has increased the pace of growth in the country. Stock indices Sensex and Nifty are surging high and hitting fresh record highs.
GST: Rental Income above Rs 20 lac taxable
The GST provisions regarding rental income have brought in cheer for all landlords. The rental income/leasing income for commercial purposes upto Rs 20 lakh shall not attract any tax levy. However, any annual rental income will result in a GST levy.
Income from leasing property upto Rs 20 lakh will not be taxable if it is rented out for office or shop.
Revenue Secretary Hasmukh Adhia said: “Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs 20 lakh as rent.”
GST: Gifts from employer to employee
Gifts and perquisites upto the value of Rs 50,000 from employer t oemployee will not be encompassed in the GST ambit. Those services, however, which are provided free of the cost to the employees will not attract GST, if the company has already paid GST for the services and included those services in the employement contract.
Free housing to employees, gym membership fees are provided in the contract and GST has already been paid by the company for these services.
Sources also revealed that out of 80 lakh assesses registered under the indirect tax regime, more than 69.32 lakh assesses have migrated to the GST regime. Those who haven’t yet registered are being intimated and reminded to do the same by regualr messages and SMS.