New GST guideline: Only GST-registered tenants face 18% tax on rent paid, know new guideline in details


Renting out a residential house to a GST registered person for living is now under the purview of GST. Its notification was issued this week, in which it has been decided to introduce GST at the rate of 18% on the service of letting out a residential house or room or apartment.

The burden of tax is not falling on the landlord but on the person who has taken the house on rent. Under the reverse charge mechanism, the tenant has to pay 18% GST on his own behalf on the rent. Senior Tax Adviser RS ​​Goyal said that it is clear in the provision that when a residential house is being taken for residential use, then GST will be levied on it.

Presently, it is provided that if a person gives his residential apartment or residential house or residential room on rent to any person, then the landlord is exempted from GST and the residential house can be used for any business activity. But still it has to be taxed at the rate of 18%, but now if you are registered in GST and also rent a house or flat or room to live with your family and make a rent agreement in the name of your business So on that you have to pay GST along with rent.


Please enter your comment!
Please enter your name here