GST on residential dwelling

Hi,

Please give us your opinion on the below-mentioned points with regards to the new circular of GST on residential dwellings. Kindly let us know the impact on our business of PG Accommodation (Paying Guest), where we take properties on rent from owners and further sublet them to other individuals on a per bed basis for residential purposes only. We register agreements with the owner for 36 months and we notarize 11 months agreement with PG. Our turnover is above 50 lakhs and so far we are not registered with GST.

1. Is GST applicable to us?

2. If yes, how much percentage and on what?

3. If yes, would we be able to claim INPUT CREDIT on the same?

4. All our individual agreements with owners are below 20 lakhs of rent annually, do we still have to register with GST? What is the threshold limit on the same?

5. End-user (PG) is taking up the property from us for residential purposes and is not registered with GST, do we still have to pay GST?

6. If yes, we have already paid rent for July 2022 (1st to 31st) to our respective owners of various properties, do we have to pay GST on a pro-rata basis from 18th July to 31st July 2022?

7. If GST is not applicable to us in your opinion, please advise why? and as per which notification of the government?

Request you to kindly reply pointwise to enable us to have a better understanding of the same.

Thanks in advance.

Replies (2)
Quick Summary
This discussion explores the implications of new GST circulars on PG accommodation businesses that rent and sublet properties. Key questions cover GST applicability, rates, input tax credit, registration thresholds, and specific scenarios like pro-rata GST payments for July 2022. The consensus suggests GST is applicable to this business model, with specific advice provided on registration and credit claims.

1)yes
2)18
3)yes
4)yes. 20 laks aggregate
5)yes
6)yes
7)applicable

Thank you for your opinion 🙂

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