{"id":4705,"date":"2022-07-23T15:08:08","date_gmt":"2022-07-23T15:08:08","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4705"},"modified":"2024-09-15T17:49:42","modified_gmt":"2024-09-15T17:49:42","slug":"now-on-pay-gst-18-on-rent-practical-aspects","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/","title":{"rendered":"Now on pay GST @ 18% on rent -Practical aspects"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dee03dd4fcf\" 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: #999;color:#999\" 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: #999;color:#999\" 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-69dee03dd4fcf\"  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:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#Now_on_pay_GST_18_on_rent_Impact_Practical_aspects\" title=\"Now on pay GST @ 18% on rent (Impact &amp; Practical aspects)\">Now on pay GST @ 18% on rent (Impact &amp; Practical aspects)<\/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:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#Is_the_Landlord_can_be_take_GST_registered_in_a_other_Different_State\" title=\"Is the Landlord can be take GST registered in a other Different State\">Is the Landlord can be take GST registered in a other Different State<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#Below_are_Gist_of_Implication_on_GST_of_Residential_Property_rental\" title=\"Below are Gist of Implication on GST of Residential Property rental\">Below are Gist of Implication on GST of Residential Property rental<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#Residential_dwellings_Renting_for_residential_use\" title=\"Residential dwellings Renting for residential use\">Residential dwellings Renting for residential use<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#Unregistered_individual_is_renting_his_commercial_property_to_Registered_company_So_is_that_tenant_should_pay_RCM_in_GST\" title=\"Unregistered individual is renting his commercial property to Registered company. So is that tenant should pay RCM in GST ?\">Unregistered individual is renting his commercial property to Registered company. So is that tenant should pay RCM in GST ?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/now-on-pay-gst-18-on-rent-practical-aspects\/#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_54_GST_Council_Meeting_amendment\" title=\"GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM | 54 GST Council Meeting amendment\">GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM | 54 GST Council Meeting amendment<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Now_on_pay_GST_18_on_rent_Impact_Practical_aspects\"><\/span>Now on pay GST @ 18% on rent (Impact &amp; Practical aspects)<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Any person who makes supply of goods over INR 40,00,000\/- &amp; a supply of service over INR 20,00,000\/- will be liable for compulsory required to be take the GST registration.<\/p>\n<p>New GST rules are all set to unsettle rentals, too. The Finance Ministry\u2019s has been introduced 18% GST on residential rentals income across the india, it has been commence from July 18 2022. As per the New GST notification, a residential house rented to a GST registered person under the GST will attract a GST @ 18%. Further, the lessee required to pay the GST, keeping the lessor out of legal liability.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4709\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1.jpg\" alt=\"GST on rent applicability\" width=\"2124\" height=\"2013\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1.jpg 2124w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-300x284.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-1024x970.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-768x728.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-1536x1456.jpg 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-2048x1941.jpg 2048w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-rent-applicablity-1-1-800x758.jpg 800w\" sizes=\"(max-width: 2124px) 100vw, 2124px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_Landlord_can_be_take_GST_registered_in_a_other_Different_State\"><\/span><span style=\"color: #000080;\"><strong>Is the Landlord can be take GST registered in a other Different State<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Yes, a landlord may also register in an another state. The Landlord need not be registered in the same state as where the Property is situated.<\/li>\n<li>The mere fact that a landlord has an immovable property that is being rented out in another state does not imply that he is providing services from that location and is therefore exempt from the requirement to register for GST in that state.<\/li>\n<li>He can choose to register for GST from a different state or inside the same state.<\/li>\n<li>IGST will be charged if the landlord is registered in a state other than the one where the property is located. If he is in the same state, then CGST and SGST would apply.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4710\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1.jpg\" alt=\"gst on rental \" width=\"986\" height=\"1280\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1.jpg 986w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1-231x300.jpg 231w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1-789x1024.jpg 789w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1-768x997.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/1-1-800x1039.jpg 800w\" sizes=\"(max-width: 986px) 100vw, 986px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4711\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1.jpg\" alt=\"gst on rental in india\" width=\"1226\" height=\"1227\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1.jpg 1226w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1-1024x1024.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1-768x769.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/2-1-800x801.jpg 800w\" sizes=\"(max-width: 1226px) 100vw, 1226px\" \/><\/p>\n<p>Final outcome of this changes is that an person or individual, who is GST registered, &amp; has income from rented a residential house property for the personal use persons &amp; not as a business expenditure, will also required to tax under GST. This needed govt intervention.<\/p>\n<p>This decision, in our viewpoint, will seriously impact how homebuyers feel. RERA Committee and the Builders Association, stated that the Reverse Charge Mechanism is applicable to all residential units with registered GST numbers (with a turnover of Rs 20 lakh). Small unit holders won&#8217;t experience any changes. As according him, this is a setback for the promotion of rental housing as a business from a real estate perspective.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Below_are_Gist_of_Implication_on_GST_of_Residential_Property_rental\"><\/span><span style=\"color: #000080;\"><u>Below are Gist of Implication on GST of Residential Property rental<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Residential_dwellings_Renting_for_residential_use\"><\/span><strong>Residential dwellings<\/strong> <strong>Renting for residential use<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 614px;\" width=\"816\">\n<tbody>\n<tr>\n<td width=\"154\"><span style=\"color: #000080;\"><strong>Tenant<\/strong><\/span><\/td>\n<td width=\"154\"><span style=\"color: #000080;\"><strong>Landlord<\/strong><\/span><\/td>\n<td width=\"154\"><span style=\"color: #000080;\"><strong>Good and services Tax <\/strong><\/span><\/td>\n<td width=\"154\"><span style=\"color: #000080;\"><strong>Input tax Credit <\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"154\">Registered Under GST<\/td>\n<td width=\"154\">Registered Under GST<\/td>\n<td width=\"154\">Good and services Tax under reverse charge mechanism<\/td>\n<td width=\"154\">Input tax Credit can be claimed if the property is taken on rent for the furtherance of business<\/td>\n<\/tr>\n<tr>\n<td width=\"154\">Unregistered<\/td>\n<td width=\"154\">Registered Under GST<\/td>\n<td width=\"154\">No Good and services Tax applicable<\/td>\n<td width=\"154\">N.A.<\/td>\n<\/tr>\n<tr>\n<td width=\"154\">Unregistered<\/td>\n<td width=\"154\">Unregistered<\/td>\n<td width=\"154\">No Good and services Tax applicable<\/td>\n<td width=\"154\">N.A.<\/td>\n<\/tr>\n<tr>\n<td width=\"154\">Registered Under GST<\/td>\n<td width=\"154\">Unregistered<\/td>\n<td width=\"154\">Good and services Tax under reverse charge mechanism<\/td>\n<td width=\"154\">Input tax Credit can be claimed if the property is taken on rent for the furtherance of business<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4758\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Renting-...jpg\" alt=\"GST on Renting ..\" width=\"1024\" height=\"694\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Renting-...jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Renting-..-300x203.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Renting-..-768x521.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Renting-..-800x542.jpg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"color: #000080;\"><strong>Relevant Important Note :<\/strong><\/span><\/p>\n<ul>\n<li>Tax Deducted at Sourceis different from Goods and Services Tax. In many cases, the tenant will needed to deduct Tax Deducted at Source on Rent under the income tax act.<\/li>\n<li>The landlord would be required to file Goods and Services Returns &amp; deposit the GST collected with the Govt of India or GST Dept. based on the Goods and Services Tax compliance return filing deadline.<\/li>\n<li>The tenant who is making the payment of Goods and Services tax to the landlord can claim the benefit of\u00a0ITC.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Unregistered_individual_is_renting_his_commercial_property_to_Registered_company_So_is_that_tenant_should_pay_RCM_in_GST\"><\/span><span style=\"color: #000080;\"><strong>Unregistered individual is renting his commercial property to Registered company. So is that tenant should pay RCM in GST ?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans :\u00a0 NO<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5232\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-property-rent..jpg\" alt=\"GST on property rent.\" width=\"946\" height=\"591\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-property-rent..jpg 576w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-property-rent.-300x188.jpg 300w\" sizes=\"(max-width: 946px) 100vw, 946px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"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_54_GST_Council_Meeting_amendment\"><\/span><span style=\"color: #ff0000;\"><strong>GST \u092e\u0947\u0902 Commercial property \u092a\u0930 \u0932\u0917\u0947\u0917\u093e RCM | 54 GST Council Meeting amendment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7925\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-scaled.jpg\" alt=\"GST on Rent (After 54 GST Council Meeting)_\" width=\"2560\" height=\"2104\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-scaled.jpg 2560w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-300x247.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-1024x842.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-768x631.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-1536x1262.jpg 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-2048x1683.jpg 2048w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GST-on-Rent-After-54-GST-Council-Meeting_-800x658.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Now on pay GST @ 18% on rent (Impact &amp; Practical aspects) Any person who makes supply of goods over INR 40,00,000\/- &amp; a supply of service over INR 20,00,000\/- will be liable for compulsory required to be take the GST registration. New GST rules are all set to unsettle rentals, too. The Finance Ministry\u2019s &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[144],"tags":[196,924],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4705"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4705"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4705\/revisions"}],"predecessor-version":[{"id":7926,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4705\/revisions\/7926"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}