Centre clarifies claim of 18% GST on house rent for tenants is misleading

Last updated: 13 August 2022

Quick Summary
Recent claims suggesting an 18% Goods and Services Tax (GST) on house rent for tenants have been clarified as misleading by the Centre. The current regulations stipulate that GST on residential unit rentals is only applicable when the property is rented to a business entity. Renting to a private individual for personal use does not incur GST, nor does it apply if a proprietor or partner rents a residence for their own personal use.

Claim: 18% GST on house rent for tenants

  • Renting of residential unit taxable only when it is rented to business entity.
  • No GST when it is rented to private person for personal use.
  • No GST even if proprietor or partner of firm rents residence for personal use.

Claim of 18% GST on house rent for tenants is misleading

FAQ :

No, the claim of an 18% GST on house rent for tenants is misleading. GST on residential rentals is only applicable when the property is rented to a business entity.

GST is only applicable when a residential unit is rented to a business entity.

No, if you are a private person renting a residential unit for personal use, you do not have to pay GST.

No, even if a proprietor or partner of a firm rents a residence for their personal use, GST is not applicable.



Guest

News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :

Recent News :

  1. Income Tax Department Undertakes Verification of Suspicious Foreign Remittances by 394 Entities
  2. PM CARES Fund Reports Rs 8452 Crore Balance as Spending Remains Minimal in FY 2024-25
  3. E-Payment of Direct Taxes Under Income Tax Act 2025: Rules, Modes and Process Explained
  4. Capital Gains Exemptions Under Income Tax Act 2025
  5. IGST Settlement 2026: New Rules Address ITC Reversals, Credit Alignment and Clarity
  6. Rectification, Assessment and Appeals Under Income Tax Act 2025
  7. CBDT Notifies Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026
  8. Key Allowances and Deductions Available to Taxpayers for Tax Year 2026-27
  9. CBDT Issues FAQs on Section 536 Transition Provisions Under Income Tax Act, 2025
  10. Tax Benefits for Senior Citizens in FY 2026-27: Deductions, TDS Relief and ITR Exemptions

More »


Popular News




Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Pavithra DossPavithra DossPro Member CA Archana RCA Archana RPro Member Jaya LadhwaniJaya LadhwaniPro Member Manish TiwariManish TiwariPro Member Milton MorasMilton Moras
Subscribe to Pro
Join an elite circle of professionals


Browse by Category