New GST rule on house rent: Do you have to pay 18% tax?2 min read . Updated: 05 Aug 2022, 08:39 AM IST
- GST on residential property: A GST-registered person who carries out business or profession must incur 18 per cent GST on such rent paid to the owner
GST on residential property: The goods and services tax (GST) is in attention these days as to whether a salaried individual should pay GST on home rent. According to tax experts, until 17th July 2022, GST was applicable on the rent of a commercial property but from 18th July 2022, GST shall be charged if such residence is rented or leased by a GST-registered person. As recommended at the 47th GST Council meeting, the tenant should pay 18 per cent GST on a reverse charge basis (RCM). However, they can claim this value as a deduction while they pay tax on sales in GST returns.
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