GST on rent

GST on rent


GST on rent

GST on Rental Income

GST threshold for Renting properties?

GST is leviable only if aggregate turnover is more than Rs. 20 Lakh. For computing aggregate supplies, the turnover of all supplies should be added.

 Exemption from GST:

  1. Renting of residential property for residential purpose is exempt from GST.
  2. Total value of goods and services provided by the landlord during the year is less than 20 lakhs AND does not have a GST registration.

If a supplier dealing in exempt goods receives rental income then such rental income will be taxable if taxpayer has obtained GST registration, even if rental income is 1,00,000 p.a.

  1. Rent received by a registered charitable trust or a religious trust which owns and manages a religious place meant for public and
  2. Rent on rooms is Rs 1000 or less per day
  3. Rent on shops and other spaces for business is charged Rs 10,000 or less per month

            iii. Rent on community halls or an open area is charged Rs 10,000 or less per day.

GST on rental deposit:

Where rental deposit is refundable upon completion of lease term, GST is not charged on such rental deposit.

However, if subsequently whole or part of the deposit to offset rent payable, you have to account GST at the time you utilize it to offset the rental.

Is “Small office Small home” considered as residential or commercial or mixed property?

To determine the type of property, property’s approval used in the Grant of the written representation issued by the Urban Redevelopment Authority should be considered.