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Starting 18 July 2022, Goods and services tax will be applicable on residential property renting to a person registered under GST. But, In case the property is rented to an unregistered person, GST would not be charged. And it will be payable as RCM applicable on that.
Tenant | Landlord | Good and services Tax | Input tax Credit |
Registered Under GST | Registered Under GST | Good and services Tax under reverse charge mechanism | Input tax Credit can be claimed if the property is taken on rent for the furtherance of business |
Unregistered | Registered Under GST | No Good and services Tax applicable | N.A. |
Unregistered | Unregistered | No Good and services Tax applicable | N.A. |
Registered Under GST | Unregistered | Good and services Tax under reverse charge mechanism | Input tax Credit can be claimed if the property is taken on rent for the furtherance of business |
PIB Tweets : No GST on residential unit rents even if prop. of firm is registered in Goods and Services Tax.
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