Who is liable to pay GST on rent of immovable property?

The owner of the property (which is given on rent) has to collect the GST from the person paying rent. This GST will be on the rent charged. The payer of rent has to deduct income tax at source at 10% if the rent for the property exceeds Rs. 2.40 lakh per year from the AY 20-21 onwards.

Who pays GST landlord or tenant?

By rule, the landlord or owner of the property given on rent needs to collect applicable GST from the tenant or person paying rent. The amount of GST will be levied on the rent charged. The person paying the rent needs to deduct TDS at 10%, in case the rental amount for the property is more than Rs. 1.80 lakh per year.

Is GST applicable on renting of immovable property?

Under GST law, exemption has been provided in respect of services by way of renting of residential dwelling for use as residence. Accordingly, in case you have rented out your residential house or flat to anyone for residential use, it will be an exempted supply and GST will not be applicable thereon.

Do landlords have to pay GST?

GST on Rent is taxed @ 18% of the Rent paid. … The landlord will be exempt from taking registration under GST if the aggregate turnover of supply of goods or services or both during the year is less than Rs. 20 lakhs during the financial year.

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Do you pay GST on rent as a tenant?

GST doesn’t apply to residential rent. You’re not liable for GST on the rent you charge, and you can’t claim any GST credits for associated expenses. … This is because GST doesn’t apply to residential rent.

What is renting of immovable property?

Renting of immovable property includes renting, letting, leasing, licensing or other similar arrangements of the immovable property. Renting of immovable property does not include renting for a religious body or to an educational body. Renting of immovable property is a service and it is subject to Service Tax.

How is GST calculated on property?

On residential properties that are not part of the affordable housing segment, GST charges on a flat purchase will be paid at 5% without an input tax credit (ITC). Residential properties included in the affordable housing segment will be subject to a 1% GST without an ITC.