No GST Registration Needed For Co-Owner If Turnover Doesn’t Exceed 20 Lakh


October 11, 2018

Co-Owner not need to Registration under GST

In an advance ruling by the Authority for Advance Ruling (AAR), Kerala it is ruled that now the co-owner of a jointly owned property does not need a GST registration separately.

The decision comes on the basis of the threshold limit set under section 22 of the Central Goods and Services Tax (CGST) Act, where the co-owner is collecting the rent on the property.

Also, the Authority for Advance Ruling stated the there is no business exemption under Section 22 of the GST Act for individual co-owners if the co-owner is engaged in the collection and distribution of rent received.

Read Also: GST Audit Form: Learn How to File GSTR 9C Return Online

The AAR in its decision said that “By mere joining of hands of two or more persons, a different and distinct legal entity or legal personality does not come into existence unless there is an intention to do so.”

“It is settled law under Section 26 of the IT Act that where the property, consisting of buildings and land appurtenant, is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not, in respect of such property, be assessed as an association of persons, but the share of each such person in the income from the property is included in his total income.”

So the co-owner is eligible for the threshold exemption if it is receiving lease rent of immovable property as according to the advance ruling by the Authority for Advance Ruling (AAR).


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