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Sharing data of Commercial Rent and Lease Deed to Curb GST Evasion- Haryana

Sharing data of Commercial Rent and Lease Deed to Curb GST Evasion- Haryana

Haryana Revenue Department to start regular data sharing of Commercial Rent and Lease Deed with the Haryana Excise and Taxation Department to curb GST Evasion.

On 23rd May 2022, a meeting was held between Sh. Anurag Rastogi, ACS (E&T) and Sh. Pranab Kishore Das, ACS and FCR to discuss the problem associated with GST evasion in renting immovable property (Other than for residential purposes).

GST has been chargeable at 18% on the renting of immovable property (Other than for residential purposes).

Therefore, any taxpayer whose turnover exceed the threshold limit of Rs. 20 lacs are required to obtain registration under the Act.

However, it has been observed that many individuals and institutions who are renting out properties for commercial purposes are underreporting or not reporting the transactions on which GST is levied.

Hence, the following are decided: 

a. Regular data sharing protocol shall set up between the Revenue Department and Excise and Taxation Department. (This shall include the data of the past registered leases).

b. System-based checks will be introduced such as recording of PAN/GSTIN of the lessor during the purchase of E-Stamp and Property Registration.

A special drive against the tax defaulters to recover tax on commercial Rentals and Leasing will be initiated by the Haryana Excise and Taxation Department.

For any further queries, you can contact the GST Team at ASC Group.

 

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