GST on Rentals:If you live in a rented house, then this is very important news for you. For some time already, there were reports that the government is going to implement GST for the people living in rented houses. But now the government has clarified on this, according to which, people living on renting residential property will have to pay 18 percent GST (18 percent GST) along with the rent.
As per the GST rules issued by the government on 18th July 2022, the GST registered tenant will have to pay tax under the reverse charge mechanism. That is, a person who comes under GST, he will have to pay 18 percent GST to take property on tax. Prior to this rule, GST was applicable only on commercial properties such as offices or places given on lease or rent.
Rules in lieu of GST regarding rent
18 percent GST will be levied on doing business on rent of residential property.
If you do a job, then there will be no GST on your rent.
This rule will be applicable to both corporate and general entities.
This rule will not apply if both the owner and tenant of the house are not GST registered.
If the company has taken a flat for the employees and the owner is not GST registered. In this situation also 18 percent GST will have to be paid.