GST Rate

GST on rent : Renting of property for residential purpose is exempt in GST as was in service tax. But if you are renting your property to a any dealer for commercial purpose and cross the threshold limit, you have to charge GST @ 18% on the rental amount and issue a tax invoice periodically to the tenant. So, rent expenses will increase marginally (but not effectively).

You need not collect GST on initial advances received, if they are refundable on termination of the rental agreement. But on termination, if you withhold any part of the advance for any reason, GST is to be charged on the amount withheld.

Input tax credit :

Now, even traders can claim input tax credit on GST paid on rent; so effective rent expenses will decrease.

As the owner of the property, you can claim input tax credit on minor repair expenses . GST paid on major renovations, interior decorations, construction of new rooms and lifts cannot be claimed as input tax credit.

However, you can claim 100% of GST paid on any furniture purchased and rented along with the property in the year of purchase itself.