According to the GST Act, renting out of an immovable property would be treated as a supply of services. GST, however, will be applicable only to certain types of rent such as:
When a property is given out on lease, rent, easement, or licensed to occupy
When any property is leased out (or let out) including a commercial, industrial, or residential property for business (either partly or wholly)
These type of renting is considered as a supply of services and thus would attract tax.
When a Residential Property is let out for Residential purpose, then it is an Exempted Service as clarified by government vide notification no 12/2017 CT. Since it is in the Negative list , rental income received by you will be exempted from GST even if your aggregate rent value exceeds ₹20,00,000 pa.
Yes, No GST if residential property is let out for the purpose residential purpose( other than commercial and industrial) irrespective of any rental amount.
Leave a Reply
Your are not logged in . Please login to post replies