{"id":11814,"date":"2021-04-25T20:30:34","date_gmt":"2021-04-25T15:00:34","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=11814"},"modified":"2025-09-25T00:33:35","modified_gmt":"2025-09-24T19:03:35","slug":"overview-on-gst-on-property-rental","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/","title":{"rendered":"All About GST on rental property"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2eecfc7dbd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2eecfc7dbd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Overview_on_GST_on_property_rental\" title=\"Overview on GST on property rental\">Overview on GST on property rental<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Different_services_for_the_rental_of_real_estate_is_covered_as_under\" title=\"Different services for the rental of real estate\u00a0is covered as under:\">Different services for the rental of real estate\u00a0is covered as under:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Residential_or_Commercial_Rental_of_Immovable_Property\" title=\"Residential or Commercial Rental of Immovable Property:\">Residential or Commercial Rental of Immovable Property:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Renting_of_a_religious_place\" title=\"Renting of a religious place:\">Renting of a religious place:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Brief_about_the_conclusion_of_services_relating_to_immovable_property_is_as_follows\" title=\"Brief about the conclusion of services relating to immovable property is as follows:\">Brief about the conclusion of services relating to immovable property is as follows:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Place_of_supply_in_case_of_Immovable_properties\" title=\"Place of supply in case of Immovable properties:\">Place of supply in case of Immovable properties:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#KAR_AAR_GST_on_Rent_received_from_Backward_Classes_Welfare_Dept\" title=\"KAR AAR: GST on Rent received from Backward Classes Welfare Dept.\u00a0\">KAR AAR: GST on Rent received from Backward Classes Welfare Dept.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#How_to_Raise_Invoice_for_GST_on_Rent\" title=\"How to Raise Invoice for GST on Rent? \">How to Raise Invoice for GST on Rent? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#GST_Compliance\" title=\"GST Compliance: \">GST Compliance: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Reverse_Charge_Mechanism_under_GST\" title=\"Reverse Charge Mechanism under GST\">Reverse Charge Mechanism under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Provision_for_a_TDS_on_income_tax_for_the_rented_property\" title=\"Provision for a TDS on income tax for the rented property:\">Provision for a TDS on income tax for the rented property:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#54_GST_Council_Meeting_amendment_GST_%E0%A4%AE%E0%A5%87%E0%A4%82_Commercial_property_%E0%A4%AA%E0%A4%B0_%E0%A4%B2%E0%A4%97%E0%A5%87%E0%A4%97%E0%A4%BE_RCM\" title=\"54 GST Council Meeting amendment |\u00a0 GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM\u00a0\">54 GST Council Meeting amendment |\u00a0 GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#How_income_from_house_property_is_calculated_for_tax_purposes_in_India\" title=\"How income from house property is calculated for tax purposes in India.\">How income from house property is calculated for tax purposes in India.<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Types_of_Property_Usage_Rent_Calculation-_Let_me_break_it_down_for_you\" title=\"Types of Property Usage &amp; Rent Calculation- Let me break it down for you:\">Types of Property Usage &amp; Rent Calculation- Let me break it down for you:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Self-Occupied_Property\" title=\"Self-Occupied Property\">Self-Occupied Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Let-Out_Property\" title=\"Let-Out Property\">Let-Out Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Vacant_Property_Deemed_Let-Out-_3rd_House_Onwards\" title=\"Vacant Property (Deemed Let-Out)- (3rd House Onwards)\">Vacant Property (Deemed Let-Out)- (3rd House Onwards)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/#Income_Calculation_Formula\" title=\"Income Calculation Formula\">Income Calculation Formula<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/Gst-rate-on-real-estate-11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11815\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/Gst-rate-on-real-estate-11.jpg\" alt=\"www.carajput.com; GST rate on Real Estate\" width=\"1022\" height=\"538\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/Gst-rate-on-real-estate-11.jpg 992w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/Gst-rate-on-real-estate-11-300x158.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/Gst-rate-on-real-estate-11-768x404.jpg 768w\" sizes=\"(max-width: 1022px) 100vw, 1022px\" \/><\/a><\/h1>\n<h1><span class=\"ez-toc-section\" id=\"Overview_on_GST_on_property_rental\"><\/span><span style=\"color: #000080;\"><strong>Overview on <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST on property rental<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>The GST has affected the impacted the real estate sector and aspects such as sales, purchases, buildings, rents, renting, and so on like other economic industries. Furthermore, a number of <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST<\/a> regulatory provisions on rental income have been laid down, for example on the place of supply, on taxable GST services, on exemptions from GST, etc.<\/p>\n<p><span style=\"color: #ffcc00;\"><strong>With the implementation of GST in India, a structured system of collecting taxes from <\/strong>different<\/span><strong><span style=\"color: #ffcc00;\"> sectors has come into place<\/span>. <\/strong>The renting of real estate is no exception to this new development. Before going ahead, let us first know what real estate means.<\/p>\n<p>It&#8217;s like a piece of land or house that cannot be transported unless it has changed and destroyed, as an object or property fixed to the Earth. GST shall apply to immovable characteristics. <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">CGST, SGST, or IGST<\/a> shall depend on where the service is provided, for the type of GST charged.<\/p>\n<p>Under the GST regime, the mechanism for property owners has changed entirely. Following the introduction of GST, the threshold limit was raised to Rs. 20 Lakhs, from 10 lakhs paid under the old tax regime.<\/p>\n<p>This arrangement helps several landlords stay out of the GST area and is no tax on rental income up to 20 lakhs. GST&#8217;s rental applicability depends on the nature of the asset or property.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Different_services_for_the_rental_of_real_estate_is_covered_as_under\"><\/span><span style=\"color: #000080;\"><strong>Different services for the rental of real estate\u00a0is covered as under:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Residential_or_Commercial_Rental_of_Immovable_Property\"><\/span><span style=\"color: #000080;\"><strong>Residential or Commercial Rental of Immovable Property:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The taxable limit is increased to 20 lakhs after implementation of the GST The taxability of rent also depends on the type of property from which it was acquired.<\/li>\n<li>In accordance with the Central Tax Notice 12\/2017 of 28-06-2017, rental of residential property is GST-free. However, commercial property rental is taxable in <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">compliance with GST.<\/a><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Renting_of_a_religious_place\"><\/span><span style=\"color: #000080;\"><strong>Renting of a religious place:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Goods and Services Tax Act has given relief to religious organizations &amp; trust. if such religious organization &amp; trust is registered U\/s 12AA of the <a href=\"https:\/\/carajput.com\/income-tax-services.php\">I Tax Act<\/a> &amp; also prescribed other condition as explained further. As per entry number 13 of notification no 12\/ 2017-CT(rate), Services by way of renting of precincts of a religious place meant for Trust registered u\/s 10(23C)(v) or authority covered u\/s 10(23BBA) of the Income-tax act 1961 or general public owned or managed by a charitable trust registered u\/s 12AA as per <a href=\"https:\/\/www.caindelhiindia.com\/blog\/file-your-income-tax-return-itr\/\">Income tax<\/a> :<\/p>\n<ol>\n<li>In case of renting of community hall or an open area &amp; like where charges are not more than INR \u00a010000 per day<\/li>\n<li>the renting of rooms where charges not more than Rs. 1000 per day<\/li>\n<\/ol>\n<p>Hence, as per aforesaid conclusion, we can see that service of renting of the room is exempt if room rent is less than Rs. 1,000 per day and in case service of renting of community hall shall be exempt if the rent per day is not more than Rs. 10,000 per day.<\/p>\n<p><em><u><strong>Read more about:<\/strong> <\/u><strong><a href=\"https:\/\/carajput.com\/blog\/itc-on-marketing-expense-sales-promotional-schemes\/\">ITC on Marketing Expenses\/Sales Promotion Scheme<\/a>\u00a0<\/strong><\/em><\/p>\n<p><strong><em><u>Read more about:<\/u><\/em><\/strong><u> <\/u><strong><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties &amp; Appeals<\/a><\/em><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Brief_about_the_conclusion_of_services_relating_to_immovable_property_is_as_follows\"><\/span><span style=\"color: #000080;\"><strong>Brief about the conclusion of services relating to immovable property is as follows:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 443px;\" width=\"1075\">\n<tbody>\n<tr>\n<td><span style=\"color: #ffcc00;\"><strong>Kind of Services<\/strong><\/span><\/td>\n<td><span style=\"color: #ffcc00;\"><strong>GST Exempt \/ Taxable <\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>Renting of precincts of a religious place with rent per day not more than INR 1000 per day by a trust or charitable trust registered u\/s 12AA<\/td>\n<td>Exempt<\/td>\n<\/tr>\n<tr>\n<td>Renting of Immovable property for residential purpose<\/td>\n<td>Exempt<\/td>\n<\/tr>\n<tr>\n<td>Renting of Kalyanamandapam or hall or an open area of a religious place with rent per day not more than INR 10,000 per day, by a trust or charitable trust registered u\/s 12AA<\/td>\n<td>Exempt<\/td>\n<\/tr>\n<tr>\n<td>Transfer of development rights and floor space index for construction of residential apartments<\/td>\n<td>Taxable<\/td>\n<\/tr>\n<tr>\n<td>Renting of precincts of a religious place with rent per day more than Rs. 1000 per day, by a trust or charitable trust, registered u\/s 12AA of the income tax act, 1961<\/td>\n<td>Taxable<\/td>\n<\/tr>\n<tr>\n<td>Renting of Kalyanamandapam or hall or an open area of a religious place with rent per day more than Rs. 10,000 per day, by the trustor charitable trust, registered u\/s 12AA<\/td>\n<td>Taxable<\/td>\n<\/tr>\n<tr>\n<td>Renting of Immovable property for commercial purpose<\/td>\n<td>Taxable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Place_of_supply_in_case_of_Immovable_properties\"><\/span><span style=\"color: #ff0000;\"><strong>Place of supply in case of Immovable properties:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Brief about the conclusion of services relating of the place of supply relating to immovable property is as follows:<\/strong><\/span><\/p>\n<table style=\"height: 199px;\" width=\"1011\">\n<tbody>\n<tr>\n<td colspan=\"3\"><span style=\"color: #ff9900;\"><strong>Place of supply in case location of suppliers and recipient are located in India.<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td><strong>Service<\/strong><\/td>\n<td><strong>\u00a0<\/strong><\/td>\n<td><strong>Place of supply<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Services provided in relation to immovable property including services provided by architects, interiors decorators, surveyors, engineers, Other experts or estate agents, service of grants of rights to use immovable property, etc. in India<\/td>\n<td><\/td>\n<td>Location of Immovable property<\/td>\n<\/tr>\n<tr>\n<td>Where supplier and recipient of service are in India and the immovable property is located outside India<\/td>\n<td><\/td>\n<td>Location of the recipient<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table width=\"869\">\n<tbody>\n<tr>\n<td width=\"869\"><span style=\"color: #ff9900;\"><strong>Place of supply in case<\/strong>\u00a0<strong>location of suppliers and recipient is located outside India<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 135px;\" width=\"1018\">\n<tbody>\n<tr>\n<td width=\"708\"><strong>Service<\/strong><\/td>\n<td width=\"161\"><strong>Place of supply<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"708\">Services provided in relation to immovable property including services provided by architects, engineers, interiors decorators, surveyors, Other experts or service of grants of rights to use immovable property, estate agents, \u00a0etc. outside India<\/td>\n<td width=\"161\">Location of Immovable property<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"KAR_AAR_GST_on_Rent_received_from_Backward_Classes_Welfare_Dept\"><\/span><span style=\"color: #000080;\"><b><span lang=\"EN-US\" style=\"font-size: 15pt; line-height: 107%; font-family: Arial, sans-serif; background: white;\">KAR AAR: <\/span><\/b>GST on Rent received from Backward Classes Welfare Dept.\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Karnataka Authority of Advance Ruling passed an order that No GST shall be levied on the rent received from the \u2018Backward Classes Welfare. \u00a0It is because the hostel works for the welfare of young girls studying in the Backward Classes. The reason is the above-mentioned precedent. The above-mentioned service, therefore, falls purview of Article 243G of the Constitution.<\/p>\n<p>In case Rents the property to the Department of Backward Classes, which in its turn uses it for the benefit of weaker groups from backward class society, so that it provides an exempt service for the post-metric Girl&#8217;s Hostel, as covered by Article 243G of the Constitution of India, to Backward Classes Welfare Department.<\/p>\n<p>And the above activity is covered by Notification No. 12\/2017-Central Tax (Rate) of 28 June 2017, entry number 3. The service is therefore exempt from the provisions of the CGST Act, 2017. The activity is also exempt pursuant to KGST Act 2017 for similar reasons.<\/p>\n<p><span style=\"color: #000080;\"><strong>Who must require to be <a href=\"https:\/\/carajput.com\/gst\/gst-registration.php\">registered under GST<\/a> if the property is rented out for business purposes?<\/strong><\/span><\/p>\n<ul>\n<li>A taxpayer that receives more than the exempt threshold must register in accordance with GST and pay taxes as per GST law. Thus it&#8217;s taxable if you give your property to a Business. Then Person must register under GST Law. if you receive over Rs 20 lakh as rent from the same one.<\/li>\n<\/ul>\n<p><strong><span style=\"color: #ffcc00;\">All the below States for which Thresh-hold for GST Registration is INR 10,00,000\/<\/span>-: <\/strong>Uttarakhand, Manipur, Meghalaya, Arunachal Pradesh, Mizoram, Nagaland, Sikkim, Tripura, Assam, Jammu &amp; Kashmir, Himachal Pradesh,<\/p>\n<p><span style=\"color: #ffcc00;\"><strong>For all other states \u2013 the threshold limit is INR 20,00,000\/-<\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong>How GST is calculated to be made, In case Renting a property for commercial use?<\/strong><\/span><\/p>\n<ul>\n<li>GST will be 18 percent of the taxable value and rent would be treated as a taxable supply of service for all commercial spaces rented.<\/li>\n<li>If a registered charitable trust or a religious trust owns and manages a religious place meant for the public then it is exempt from GST.<\/li>\n<li>These rooms are rented for less than Rs. 1000 per daily \u2013 business rental is lower than Rs. 10,000 per month \u2013<\/li>\n<li>Community halls or open areas are rented at less than Rs 10,000 per day<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Input Tax Credit provisions on GST payable on the rent.<\/strong><\/span><\/p>\n<ul>\n<li>If a Person pays GST for rent, his other tax dues can normally receive credit for taxes paid. In other words, if it&#8217;s Input Tax Cr\u00e9dit is satisfied with all provisions, ITC may be requested on GST payable on the rent.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Commission Paid to Broker <\/strong><\/span><\/p>\n<ul>\n<li>The commission paid by the landlord to the real estate broker is covered by GST. The courier must be registered with GST and the landlord should collect GST. GST applies even if the residential real estate commission is paid.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Raise_Invoice_for_GST_on_Rent\"><\/span><span style=\"color: #000080;\"><strong>How to Raise Invoice for GST on Rent? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If GST has been paid in respect of rental, the property owner has to prepare an appropriate GST Invoice, clearly specify the invoice No, invoice date, rent received, GST rate, and a number of other items, pursuant to Invoice Rules.<\/li>\n<li>No format for raising the GST Invoice is prescribed by the government. The Govt has ordered certain items to be included in the invoice. It is not mandatory to locate these items. In addition, the landlord is free to mention any items other than the Govt&#8217;s mandate.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"GST_Compliance\"><\/span><span style=\"color: #000080;\"><strong>GST Compliance: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/gst\/gst-return.php\">GST returns<\/a> should be filed by the landlord &amp; the GST collected by the Govt based on the GST Return filing schedule deposit.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Reverse_Charge_Mechanism_under_GST\"><\/span><span style=\"color: #000080;\"><strong>Reverse Charge Mechanism under GST<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>According to the GST Act, if a registered person is rented by the government or the local authorities, the GST is paid in return by the tenant. In the event that the tenant is unregistered, GST under the forward charge mechanism is collected by the Govt.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Provision_for_a_TDS_on_income_tax_for_the_rented_property\"><\/span><span style=\"color: #000080;\"><strong>Provision for a <a href=\"https:\/\/carajput.com\/tds.php\">TDS on income tax<\/a> for the rented property:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/download-11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11819\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/download-11.jpg\" alt=\"www.carajput.com; TDS on Rent Income\" width=\"954\" height=\"397\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/download-11.jpg 348w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/download-11-300x125.jpg 300w\" sizes=\"(max-width: 954px) 100vw, 954px\" \/><\/a><\/p>\n<ul>\n<li>The property&#8217;s owner (payable on rent) must collect the GST from the payer. If the rent for property exceeds Rs. 2.40 lakh\/year from AY 20-21, the payer of the rent must deduct income tax at the source of 10 percent. The TDS applies to both residential and business property. TDS is not going to have GST.<\/li>\n<\/ul>\n<p>Recalling important point: In accordance with the reverse charge mechanism(RCM), GST on rents charged to a registered person for immovable properties by the government or local authority. But the government would deduct GST itself if the property is rented to an unregistered person (Forward charge mechanism).<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/imm-prop-3.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11817\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/imm-prop-3.png\" alt=\"www.carajput.com; GST rate on Real Estate\" width=\"1072\" height=\"711\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/imm-prop-3.png 820w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/imm-prop-3-300x199.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/imm-prop-3-768x510.png 768w\" sizes=\"(max-width: 1072px) 100vw, 1072px\" \/><\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22900\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/taxreply-1100.png\" alt=\"GST on Rent after PIB Tweets\" width=\"1038\" height=\"578\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/taxreply-1100.png 950w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/taxreply-1100-300x167.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/taxreply-1100-768x428.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/taxreply-1100-800x445.png 800w\" sizes=\"(max-width: 1038px) 100vw, 1038px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"54_GST_Council_Meeting_amendment_GST_%E0%A4%AE%E0%A5%87%E0%A4%82_Commercial_property_%E0%A4%AA%E0%A4%B0_%E0%A4%B2%E0%A4%97%E0%A5%87%E0%A4%97%E0%A4%BE_RCM\"><\/span><span style=\"color: #ff0000;\">54 GST Council Meeting amendment |\u00a0 GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27450\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-scaled.jpg\" alt=\"GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM | 54 GST Council Meeting amendment\" width=\"2560\" height=\"2104\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-scaled.jpg 2560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-300x247.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-1024x842.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-768x631.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-1536x1262.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-2048x1683.jpg 2048w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/GST-on-Rent-After-54-GST-Council-Meeting_-800x658.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_income_from_house_property_is_calculated_for_tax_purposes_in_India\"><\/span><span style=\"color: #000080;\">How income from house property is calculated for tax purposes in India.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-30002\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property.jpg\" alt=\"How to calculate income from property.\" width=\"969\" height=\"1441\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property.jpg 861w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property-202x300.jpg 202w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property-689x1024.jpg 689w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property-768x1142.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/How-to-calculate-income-from-property-800x1189.jpg 800w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Types_of_Property_Usage_Rent_Calculation-_Let_me_break_it_down_for_you\"><\/span><span style=\"color: #000080;\">Types of Property Usage &amp; Rent Calculation- Let me break it down for you:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Self-Occupied_Property\"><\/span><span style=\"color: #000080;\">Self-Occupied Property<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>If you or your family live in the house, or it\u2019s vacant for the full year,<br \/>\nthen it is treated as self-occupied.<\/li>\n<li>Up to 2 houses can be treated as self-occupied.<\/li>\n<li>Rent = \u20b90<\/li>\n<\/ul>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Let-Out_Property\"><\/span><span style=\"color: #000080;\">Let-Out Property<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Property is rented out.<\/li>\n<li>Rent = Actual rent received<\/li>\n<li>Tax on rent is mandatory.<\/li>\n<li>If the property is rented, then tax is mandatory on rent received &amp; Rent is calculated as Actual Rent Earned.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Vacant_Property_Deemed_Let-Out-_3rd_House_Onwards\"><\/span><span style=\"color: #000080;\">Vacant Property (Deemed Let-Out)- (3rd House Onwards)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Vacant Property From the 3rd property onwards, if the house is vacant, it will be treated as deemed to be let out.<\/li>\n<li>Rent = Deemed rent, which is:\n<ul>\n<li>Higher of: Fair rent or Municipal rent<\/li>\n<li>Compared to: Standard rent (as per Rent Control Act)<\/li>\n<li>Lower of the two is considered as deemed rent..<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Income_Calculation_Formula\"><\/span><span style=\"color: #000080;\">Income Calculation Formula<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ol>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Rent (A) \u2013 Actual or deemed rent<\/li>\n<li>Municipal Taxes (B) \u2013 Paid by owner<\/li>\n<li>Net Rent (C) = A \u2212 B<\/li>\n<li>Standard Deduction (D) = 30% of C<\/li>\n<li>Loan Interest (E) \u2013 Interest paid on home loan<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>Net Taxable Income from Property = C \u2212 D \u2212 E. So, the taxable income from property is computed after considering municipal taxes, 30% standard deduction, and interest on housing loan.<\/p>\n<p>Rajput Jain and Associates provides clients with adequate support and guidance from our side in dealing with various GST issues (GST registration, filing of GST declarations, requesting refunds, and <a href=\"https:\/\/carajput.com\/gst\/gst-audit.php\">GST audits<\/a>). Contact us if you have a question or want to know more about GST cancellation.<\/p>\n<p><iframe loading=\"lazy\" title=\"What is GST | GST \u0915\u094d\u092f\u093e \u0939\u0948 | Types of GST Registration | GST Return | GST Registration Process\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/WRnOU8xORgw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview on GST on property rental The GST has affected the impacted the real estate sector and aspects such as sales, purchases, buildings, rents, renting, and so on like other economic industries. Furthermore, a number of GST regulatory provisions on rental income have been laid down, for example on the place of supply, on taxable &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[9864],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11814"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=11814"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11814\/revisions"}],"predecessor-version":[{"id":27454,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11814\/revisions\/27454"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=11814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=11814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=11814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}