{"id":51,"date":"2024-04-19T11:18:04","date_gmt":"2024-04-19T11:18:04","guid":{"rendered":"https:\/\/realestatedekho.com\/news\/?p=51"},"modified":"2024-04-29T06:13:14","modified_gmt":"2024-04-29T06:13:14","slug":"gst-on-rent-all-you-need-to-know-about-applicable-tax-rate","status":"publish","type":"post","link":"https:\/\/realestatedekho.com\/news\/2024\/04\/19\/gst-on-rent-all-you-need-to-know-about-applicable-tax-rate\/","title":{"rendered":"GST on rent: All you need to know about applicable tax rate"},"content":{"rendered":"\n

The implementation of GST has left a significant impact on both the residential and commercial real estate sectors. Let alone the capital market, the rental market, too, is not spared of the tax levy. For instance, the rental income generated from commercial units attracts GST. Here are certain other provisions and exemptions of the new tax regime in relation to the rental properties.<\/p>\n\n\n\n

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What is GST on Rent?<\/h2>\n\n\n\n

Goods and Services Act, or GST, was first introduced in 2017. The introduction of GST brought a lot of changes in the taxation system of rental income<\/a>. Under GST, renting a property is considered a supply of service that is taxable, and both tenants and landlords have to fulfill their tax obligations. Rental income earned by the landlords attracts GST. The tax is calculated as a percentage of the rental income received<\/a>. The tenants who pay the rent also have to pay GST on the rent amount. This tax is included in the total rent and deposited to the tax department by the landlords on behalf of the tenant.<\/p>\n\n\n\n

GST on rent payment<\/h2>\n\n\n\n
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As per the provisions of the GST Act<\/a>, renting out of a commercial property or a property used for commercial purposes would be considered as a supply of services. With this, GST will be applicable on a property when it is let out on lease or rent.<\/p>\n\n\n\n

GST would be applicable on these types of properties \u2013<\/p>\n\n\n\n