As per the recommendations of 47th GST council meeting, the GST will be applicable if a Residential Property is rented out to a Registered Person under GST w.e.f. 18 July 2022.
Vide Notification no. 04/2022-Central Taxes (Rates) and Notification no. 05/2022-Central Taxes (Rates) dated 13 July 2022, the entry for exemption on renting of Residential Property has been amended to exclude the renting of Residential Property to a registered person. Furthermore, the Registered person receiving the services shall be responsible to pay GST under Reverse Charge Mechanism. Accordingly, it can be interpreted that the GST will not be applicable or exempted if the Residential Property is rented out to an Un-registered person under GST. It will continue to be exempted vide Notification no. 12/2017-Central Taxes (Rates) dated 28 June 2017.
Source CA Deepak Arya
