Question47:A Rice Mill has been given on Lease for the Past 5 Years with a Monthly rent of Rs. 10,00,000 (10 Lakh p.m.). Whether GST is to be charged on the lease rent ' Whether it can avail any exemption due to the lease rent being less than 1.50 Crore '


Answer As per Section 7 of CGST Act, Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;.

In view of above section Rice Mill given on lease for monthly rent of Rs 10 lacs is a Supply and taxable under GST. There is no any exemption limit of Rs 1.50 crore under GST with respect to lease rent. Therefore GST is charged on lease rent. (Reply dt.06/02/2018)