Home > GST > Help Center > GST on Renting of residential propertyLast Updated: Mar 12th 2023
Renting of properties by the owners are common these days. Renting can be either for residential purpose or commercial purpose. As the rent comes under services GST is applicable on Renting of properties. Know more on the latest changes.
This document covers
S.No | Landlord under GST | Tenant under GST | Applicability of GST |
---|---|---|---|
1 | Unregistered | Unregistered | Not Applicable |
2 | Registered | Unregistered | Not Applicable |
3 | Unregistered | Registered | GST @ 18%. Payable by Tenant under reverse charge mechanism |
4 | Registered | Registered | GST @ 18%. Payable by Tenant under reverse charge mechanism |
CBIC has issued an explanation on renting of residential property w.e.f 01st Jan 2023. If the proprietor of sole Proprietorship registered under GST takes a residential property on rent for residential purpose in his personal capacity, GST is not applicable w.e.f 01st Jan 2023
Example 1 :
Bala private limited which is registered under GST has taken a residential apartment for its employees towards residential purpose from Mr Ram who is a unregistered person.
Example 2:
Mr Krishna is a proprietor of Krishna enterprises which is registered under GST. He rented out a residential building for his family residential purpose in his personal capacity from 01/04/2022 to 31/03/2023. He is paying a rent of Rs 10000 per month for his residential purpose.
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