GST on Rental Property in India-News

New notification of GST 18 July 2022, 18% GST on Rental property

GST- Goods & service tax  introduced in July 2017, till then this was the 47th GST council meets held in July 2022 and new changes came effected from 18th of July 2022.

GST when ever it came in taxation it has made lots of changes because government not clear with its vision why and how it should be…

Impact of GST on Rent:

The Indian businessman and entrepreneurs are confused and CA and tax experts also confuse how they have to treat it, and so many changes and its effects irritate to all entrepreneurs.

Now the another one changes on 47th council meets.

But different tax guru saying something different because the government once again not clarify and unable to clear how it treat the new rules, how it calculate, who will pay, who is liable to pay and how it can be show in taxation in ITR. 

Who is liable to pay GST & Rate:

The tenant is liable to pay the GST to the property owner @ 18% on rent.

Who is liable to pay the GST to Government:

Lots of articles on net available but neither one out of them clarify that who will pay the GST to government account, the answer is tenant, tenant will deposit the GST amount on rent to government GST ACCOUNT, reverse charge mechanism basis. He will get back or deduct from its GST paid.

The GST on Rent applicability & Total confusion:

NO GTS applicable on residential purpose rented property by an individual or a firm or business identity. The GST applicable only when the rented property used for commercial purpose, and the tenant is registered in GST, and above it is on reverse mechanism basis, it can be adjusted in its GST of its goods or in services.

Then what the meaning?

can anybody who is tax guru or GST expert can explain it in details what it mean for?

now words its totally confusion at all.

in Short no GST no Tension just chill, its confusion at all.

Because if the tenant who take a commercial property on rent and he is not registered with GST because of its low turnover then he also not liable to pay the GST on rent, and if he is liable to pay the GST then it will be adjustable in its services or goods then what it means for?

Just forget once again…NO GST at all.

Impact of GST on Rental income from Commercial property:

The impact of GST on rental income from commercial property is zero because only tenant have to pay the GST and it is or reverse mechanism basis that will adjust in the tenant GST liability. So impact on landlord rental income from commercial property, he is liable to pay only income tax on rental income as per slab applicable.

Is residential rental property attract the GST? the answer is no, residential rented property does not attract the GST.

GST on Rent in Hindi also can watch on you tube channel- real estate news.

Understand with an example:

Lets one enterpreneur collect the total GST in a year Rs.1 lac and he pay Rs. 10 k GST on commercial property now he will pay the GST to government account 100000-10000=90 k only, just like TDS,  if your TDS deducted and you file ITR then your TDS adjusted in your tax liability that is all.

GST on Rental Income from commercial property.

GST on Residential property rent notification.

GST on rental income 40 Lakhs

GST on Residential property rent notification taxguru

GST on rent limit

GST on rent paid to unregistered person

GST on commercial property

rcm on rent paid under GST

Impact of GST on rental income from commercial property.


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