In a drive to curb GST evasion, the Haryana Government has informed the decision to share the data of commercial rent/ lease deeds with the State Excise and Taxation department.
Pranab Kishore Das, ACS and FCR, and Anurag Rastogi, ACS (E & T), met to discuss the subject of GST avoidance in the rental of immovable property other than those rented out for residential reasons. Any rental of immovable property, other than those rented for residential reasons, is subject to 18% GST under the GST Act.
Resultantly, any taxpayer with a revenue of more than Rs. 20 lacs who provides rental of immovable services (commercial) is required to register and pay GST.
As per the press release, the state government has discovered that many people and institutions that rent out commercial buildings are underreporting or failing to disclose such transactions that are subject to GST. The government has agreed to establish a regular data exchange mechanism between the Revenue Department and the Excise and Taxation Department. This must contain information from previously recorded leases.
The government will implement system-based checks, such as capturing the lessor’s PAN or GSTIN during the purchase of an 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,” the press release said.
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