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GST and Residential Rent topic

GST Doubt (mcom) (21 Points)

03 June 2023

Current State : I (Tax Payer) applied for GST Under Rent category, So I am asked to submit an rental agreement. My landlord is not a registered person.

Question 1 : Who has to pay 18% rental tax ?

Question 2 : If Me (tax payer), should I still pay this 18% rental tax, if I file Nil returns(zero returns)

Question 3. Any Exemption is there from this? (Since I am a new Starter )

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 June 2023

The query is not clear about the type of property, residential or commercial etc.

If commercial, the owner should charge GST if registered.

For new starters there is basic exemption limit; but once registered you have to charge GST over your outward supplies and pay the same to Government. You can get ITC benefit if its available with your output supply.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 03 June 2023

It's no matter whether the property is residential or commercial when it is rented out for commercial purposes.

The threshold limit in term of Section 22 to obtain registration is 20 lac.

1. When it is residential property & rented out for commercial purposes. :
As per Notification no. 05/2022 as amended by Notification 15/2022 CT rate : Where the tenant is registered
When a tenant is registered and takes a residential property on rent from any person (registered or unregistered person) GST will be applicable under RCM. Liability to pay GST @ 18% will be of the recipient (tenant/lessee) of service.