Tax Consultant
1662 Points
Posted on 14 July 2026
For renting out a commercial building with parking to event organizers , premises only, no catering , the Composition Scheme is not available.
Two reasons:
1. Composition Scheme under Section 10(1) and 10(2A) CGST Act is available only for specified categories. Renting of commercial immovable property is specifically excluded under Rule 7 of the CGST Rules , suppliers making inter-state supplies or those supplying goods or services not eligible under the scheme cannot opt in.
2. If your annual aggregate turnover exceeds Rs 50 lakh for services, the Section 10(2A) composition option (6% rate) is also not available for renting of immovable property since this service is not on the eligible list for that sub-section.
Applicable GST rate under the regular scheme:
- SAC 997212: Rental or leasing services involving own or leased non-residential property
- Rate: 18% GST
- Exemption: If the renter is registered under GST, RCM does not apply here. The owner (your client) must charge and collect 18% GST and file regular GSTR-1/3B returns.
For parking space separately rented (SAC 996721), same 18% applies. If bundled with the hall, the principal supply (hall rental) determines the rate , 18%.
If annual turnover is below Rs 20 lakh, registration itself may not be mandatory. But if above that threshold, regular GST registration and 18% billing applies.
More on GST composition scheme eligibility: [GST composition scheme eligibility and rates](https://taxgarden.in/blog/gst-composition-scheme-eligibility-rates-india-2026)
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