Forward charge instead Reverse charge on Property rent

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This discussion clarifies the GST implications for renting residential property to a registered person. Previously exempt, GST is now applicable from July 18, 2022, if the tenant is GST-registered. The primary focus is on whether a regular taxpayer can utilise the forward charge mechanism rather than the reverse charge for these transactions.

Akash Siby

Akash Siby (Querist)
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18 January 2024 Is there any provision or case law for a Regular taxpayer to opt Forward charge mechanism for residential property rented to a registered person.

RAJA P M

RAJA P M (Expert)
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19 January 2024 GST not applicable for residential Rent... Also residential building can't be used for business purpose. If it's used for business then it's also deal as business income...

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 January 2024 GST was exempt on residential dwelling till 17th July 2022. However, GST @18% is applicable on residential dwelling, from 18th July 2022, if the tenant of the residential dwelling is registered under GST.

https://taxguru.in/goods-and-service-tax/gst-rent-residential-commercial-property.html#google_vignette

RAJA P M

RAJA P M (Expert)
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20 January 2024 The residential building rented to residential purpose then gst not applicable. Even tenant registered or not...

Akash Siby

Akash Siby (Querist)
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22 January 2024 I think the exemption has withdrawn for the case of renting to registered person and GST is chargeable.
The Reverse charge is applicable for the transaction. I need to know there is any provision to follow forward charge for the same.

RAJA P M

RAJA P M (Expert)
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22 January 2024 Yes the exemption is withdrawn of the residential building used in business purpose. If the registered person used for residential purpose then GST not applicable.

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