VATupdate

New GST rule on house rent: Do you have to pay 18% tax?

On what rule says in regard to GST on rent of residential property, Mahesh Jaising, Partner, Leader – Indirect Tax at Deloitte India said, “Renting of residential dwellings up to 17th July 2022 was exempt regardless of the status of the tenant i.e. whether the service provider or service recipient is registered or unregistered. This meant that renting of property for residential purposes was exempt for all. However, w.e.f. 18th July 2022, a tenant who is registered will become liable to GST on renting for residential purposes under the reverse charge mechanism.”

Source: biteofmillionaire.com

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