{"id":12222,"date":"2024-09-23T05:07:26","date_gmt":"2024-09-22T23:37:26","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12222"},"modified":"2025-09-30T13:12:08","modified_gmt":"2025-09-30T07:42:08","slug":"gst-on-rent","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-on-rent\/","title":{"rendered":"GST on Rent &#8211; Commercial and Residential Property GST Rate"},"content":{"rendered":"<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex w-full flex-col items-end gap-2 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"80468eb4-7b32-46f6-a049-a26293ee4c53\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/learn\/gst-goods-and-services-tax-guide\/\">GST<\/a> impacts various sectors, including real estate, where rental services are subject to specific tax regulations. Knowing how GST applies to property rentals is essential for staying compliant and managing financial responsibilities effectively. This article breaks down the relevant GST rules for property rentals.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6d0aa5b8c8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6d0aa5b8c8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#What-is-the-GST-on-Rent\" >What is the GST on Rent?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#GST-on-Renting-Commercial-property\" >GST on Renting Commercial property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#GST-on-Renting-of-Residential-Property\" >GST on Renting of Residential Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#Tax-on-Income-from-Rent-Pre-GST-Era\" >Tax on Income from Rent: Pre-GST Era<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#How-to-Calculate-GST-on-Rented-Properties\" >How to Calculate GST on Rented Properties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#ITC-Provisions-for-GST-Charged-on-Rent\" >ITC Provisions for GST Charged on Rent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#How-to-Check-Place-of-Supply-for-Charging-CGST-SGST-or-IGST\" >How to Check Place of Supply for Charging CGST, SGST, or IGST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#Impact-of-GST-Rate-Changes-on-Rental-Market\" >Impact of GST Rate Changes on Rental Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#GST-Compliance-and-Documentation-for-Landlords\" >GST Compliance and Documentation for Landlords<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-GST-on-Rent\"><\/span>What is the GST on Rent?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">Rent for commercial properties is subject to an <\/span><b>18% GST<\/b><span style=\"font-weight: 400;\">, which landlords must collect from tenants and remit to the government. However, residential property rent including horse rent is generally <\/span><b>exempt from GST<\/b><span style=\"font-weight: 400;\">, as clarified by the <\/span><a href=\"https:\/\/gstcouncil.gov.in\/sites\/default\/files\/Minutes\/48THMINUTES.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">48th GST Council<\/span><\/a><span style=\"font-weight: 400;\">. If a property is rented solely for residential purposes, no GST is applicable, even if the tenant is a business owner. The exception applies only if the property is used in part or full for commercial purposes.<\/span><\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/gst-on-flat-purchase\/\">A Guide to GST on Flat Purchases<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-on-Renting-Commercial-property\"><\/span><b>GST on Renting Commercial property<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Renting out commercial properties is treated as a supply of services under GST law and is subject to an 18% GST. Landlords are required to collect this tax from tenants and remit it to the government. This applies to all types of commercial properties, including office spaces, shops, warehouses, and industrial buildings.<\/span><\/p>\n<h3><b>Exemptions on GST for Renting Commercial Property<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are certain exemptions for properties managed by registered charitable or religious trusts. To qualify for GST exemption, the rental charges must meet the following conditions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Room rent must not exceed <\/span><b>\u20b91,000 per day<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rent for community halls or open areas should be below <\/span><b>\u20b910,000 per day<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shops or commercial space rents must be below <\/span><b>\u20b910,000 per month<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Additionally, if your total income from all business activities, including rent from commercial properties, exceeds \u20b920 lakh per annum, you must register under GST. This includes the obligation to collect and deposit GST on the rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b><a href=\"https:\/\/razorpay.com\/learn\/reverse-charge-mechanism-gst\/\">reverse charge mechanism<\/a> (RCM)<\/b><span style=\"font-weight: 400;\"> applies if the tenant is a registered business under GST and the landlord is not registered. In such cases, the tenant is responsible for paying the GST directly to the government under RCM provisions, which can increase the overall cost of renting commercial properties, especially for businesses dealing with unregistered landlords.<\/span><\/p>\n<p><b>Related Read: <\/b><em><a href=\"https:\/\/razorpay.com\/learn\/gst-exemption\/\"><b>GST Exemption: List of Goods and Services Exempt Under GST<\/b><\/a><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-on-Renting-of-Residential-Property\"><\/span><b>GST on Renting of Residential Property<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Renting residential property including house rent is generally <\/span><b>exempt from GST<\/b><span style=\"font-weight: 400;\">, as clarified by the 48th GST Council. If a property is rented solely for residential purposes, tenants do not have to pay GST, even if they are business owners. This exemption ensures that individuals living in rented homes can do so without the added burden of tax.<\/span><\/p>\n<h3><b>Exemptions on GST for Renting Residential Property<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are exceptions to this exemption. If the residential property is furnished or used partially for commercial purposes, GST may apply. Additionally, landlords with a total annual income exceeding \u20b920 lakh from all business activities, including residential rent, must register under GST and comply with relevant regulations. Understanding these guidelines is essential for both landlords and tenants to ensure compliance with GST laws.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax-on-Income-from-Rent-Pre-GST-Era\"><\/span><b>Tax on Income from Rent: Pre-GST Era<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before the implementation of GST, landlords had to register for service tax if their total taxable services, including rental income, exceeded \u20b910 lakh per annum. Under GST, renting of immovable property for business or commercial use attracts 18% GST.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rental income from residential properties let out solely for residential use was exempt from service tax. Therefore, landlords with rental income from residential properties under \u20b910 lakh did not need service tax registration. However, if a residential property was used for commercial activities, it attracted service tax.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The pre-GST framework created a threshold that limited service tax liabilities, allowing many landlords with lower rental incomes to remain outside the tax net. With the introduction of GST, the threshold for tax applicability was raised to \u20b920 lakh, simplifying the tax structure and reducing the burden on landlords previously subject to service tax.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-GST-on-Rented-Properties\"><\/span><b>How to Calculate GST on Rented Properties?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Calculating GST on rented properties is straightforward and is based solely on the rent received by the landlord, not including any additional fees such as maintenance costs. For commercial properties, the GST rate is set at 18%. The formula for calculating GST is:<\/span><\/p>\n<p><b>GST = (Rent x 18%) \/ 100<\/b><\/p>\n<h3><b>Examples:<\/b><\/h3>\n<h4><b>Commercial Property with Standard Rent<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If you rent out an office space for \u20b950,000 per month, the GST calculation would be:<\/span><\/p>\n<p><b>GST = (\u20b950,000 x 18%) \/ 100 = \u20b99,000<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the landlord needs to remit \u20b99,000 as GST on the \u20b950,000 monthly rent.<\/span><\/p>\n<h4><b>Residential Property Rented for Commercial Use<\/b><span style=\"font-weight: 400;\">:<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If a residential property is rented out for commercial purposes, such as a warehouse, and the monthly rent is \u20b925,000, the GST calculation would be:<\/span><\/p>\n<p><b>GST = (\u20b925,000 x 18%) \/ 100 = \u20b94,500<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Here, the landlord would need to pay \u20b94,500 as GST on the \u20b925,000 monthly rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By applying this formula, landlords can easily determine their GST obligations on rental income.<\/span><\/p>\n<p><em><b>Related Read: <\/b><a href=\"https:\/\/razorpay.com\/learn\/gst-on-maintenance-charges\/\"><b>GST on Maintenance Charges<\/b><\/a><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ITC-Provisions-for-GST-Charged-on-Rent\"><\/span><b>ITC Provisions for GST Charged on Rent<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Under GST regulations, landlords paying GST on rent can typically claim Input Tax Credit (ITC) for the tax paid, provided they meet all necessary conditions for claiming it. This means that if you are paying GST on rent, you can offset this amount against your other tax liabilities.<\/span><\/p>\n<h3><b>ITC on Repairs and Renovations<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The GST paid on repairs, maintenance, and brokerage associated with properties rented out is generally eligible for ITC. However, this is only applicable if the expenses are not capitalized in the landlord&#8217;s books. According to Section 17(5) of the CGST Act, ITC is disallowed on certain expenditures, including costs related to constructing immovable property for personal use or for furthering one\u2019s business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In summary, while GST on repairs and brokerage for rented properties can be claimed as ITC, it is crucial to ensure that these costs are not capitalized, as capitalized expenses are not eligible for credit.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Check-Place-of-Supply-for-Charging-CGST-SGST-or-IGST\"><\/span><b>How to Check Place of Supply for Charging CGST, SGST, or IGST<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Determining the place of supply is crucial for landlords to understand whether to charge CGST and SGST or IGST when renting out property. The place of supply depends on the locations of both the landlord and the tenant, as well as where the property is situated. Here are some key scenarios:<\/span><\/p>\n<h3><b>Scenario 1: Landlord Registered in a Different State<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If the landlord is registered in a state different from where the rented property is located, the place of supply will be the location of the property. This is considered an interstate supply, and IGST will be charged.<\/span><\/p>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> If Mr. Sharma, registered in Delhi, rents out a commercial property in Punjab, he will charge IGST at 18%. Mr. Sharma does not need to register for GST in Punjab.<\/span><\/p>\n<h3><b>Scenario 2: Both Landlord and Tenant Registered in the Same State<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When both the landlord and tenant are registered in the same state as the property, they will charge both CGST and SGST, each at 9%.<\/span><\/p>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> If Ms. Patel, registered in Gujarat, rents her commercial property in Ahmedabad, she will charge CGST and SGST of 9% each.<\/span><\/p>\n<h3><b>Scenario 3: Landlord Registered in the Same State, Tenant in Another State<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In this scenario, if the landlord is registered in the same state as the property but the tenant is registered in a different state, CGST and SGST will still be charged. However, the tenant cannot claim ITC on these taxes if they are not registered in the state where the property is located.<\/span><\/p>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> If Mr. Rao from Maharashtra stays at a hotel in Rajasthan, where the hotel is registered, both CGST and SGST will be applied to the rent. Since Mr. Rao is registered in a different state, he cannot claim ITC for the GST paid.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact-of-GST-Rate-Changes-on-Rental-Market\"><\/span><b>Impact of GST Rate Changes on Rental Market<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">GST rate changes significantly affect India&#8217;s rental market:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Commercial Properties<\/b><span style=\"font-weight: 400;\">: An <\/span><b>18% GST<\/b><span style=\"font-weight: 400;\"> rate can increase tenant costs, potentially making these properties less attractive. This may lead to rent negotiations or reconsideration of investments, impacting supply and demand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Residential Properties for Commercial Use<\/b><span style=\"font-weight: 400;\">: GST applies to residential properties used for commercial purposes, such as co-living spaces. This added tax can reduce profit margins and make such ventures less feasible. However, purely residential rentals remain GST-exempt, which is beneficial for the residential rental market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: 19px;\">Historical Impact<\/b><span style=\"font-weight: 400;\">: Changes in <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST rates<\/a> have historically influenced rental prices and market behavior, shaping investment decisions and compliance requirements. Higher taxes may deter investment in commercial and high-end residential rental markets.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"GST-Compliance-and-Documentation-for-Landlords\"><\/span><b>GST Compliance and Documentation for Landlords<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Landlords renting out commercial properties must adhere to specific GST compliance requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST Registration:<\/b><span style=\"font-weight: 400;\"> If the annual rental income exceeds Rs. 20 lakh (or Rs. 10 lakh for special category states), landlords are required to obtain a GST registration number.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Invoicing:<\/b><span style=\"font-weight: 400;\"> Landlords must issue GST-compliant invoices to tenants, detailing the rental amount, GST rate, and other relevant information.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Input Tax Credit (ITC):<\/b><span style=\"font-weight: 400;\"> Landlords can claim ITC on eligible expenses related to the property, such as property tax, maintenance, and repairs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST Returns:<\/b><span style=\"font-weight: 400;\"> Regular filing of GST returns (GSTR-1, GSTR-3B, and GSTR-9) is mandatory to report rental income and ITC claims.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Record Keeping:<\/b><span style=\"font-weight: 400;\"> Maintain detailed records of rental income, expenses, and GST payments for audit purposes.<\/span><\/li>\n<\/ul>\n<p><em><strong>Also Read:\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-mobile-phones\/\">GST Rates on Mobile Phones<\/a><\/strong><\/em><\/li>\n<li><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-food-and-restaurants\/\">GST on Food and Restaurants<\/a><\/strong><\/em><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. What is GST on rent under Reverse Charge Mechanism (RCM) and when does it apply?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">GST on rent under the Reverse Charge Mechanism (RCM) means that if the landlord is not registered under GST, the tenant, who is registered, must pay the GST directly to the government. The applicable rate is 18% for commercial properties.<\/span><\/p>\n<h3><b>2. Does Renting Out a Property Attract GST?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, renting out a property can attract GST under certain conditions. According to the GST Act, leasing an industrial, commercial, or residential property to a corporate entity, or providing a license to occupy, is considered a supply of services and is subject to an 18% GST. However, if the residential property is rented solely for residential purposes, GST does not apply.<\/span><\/p>\n<h3><b>3. Who has to register when the property is rented out to businesses?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If your total annual business income, which includes rental earnings and any other exempted income, exceeds Rs. 20 lakh, you are required to register under GST.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if Mrs. Riya earns an annual rental income of Rs. 30 lakh from multiple properties she owns and manages, her total business income surpasses the Rs. 20 lakh threshold. Therefore, she must register herself under GST to comply with the tax regulations.<\/span><\/p>\n<h3><b>4. What is the GST threshold limit for rent?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If the total annual business income, including rental earnings, exceeds Rs. 20 lakh, GST registration is mandatory.<\/span><\/p>\n<h3><b>5. Is there no GST paid on residential property?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">GST is not applicable on rental income from residential properties if they are rented out for personal use as residences. However, it is applicable if the same property is rented out for commercial purposes or to a business entity.<\/span><\/p>\n<h3><b>6. Is GST applicable on rent received from a commercial property?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, GST is applicable on rent received from commercial properties at a rate of 18%.<\/span><\/p>\n<h3><b>7. Are there any exemptions on GST for renting properties?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, GST is exempt on rental income from residential properties rented for personal use and properties managed by religious or charitable trusts under specific conditions (For example, room rentals under Rs. 1,000 per day).<\/span><\/p>\n<h3><b>8. Who is responsible for paying GST on rent?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The landlord is responsible for paying GST on rental income when the property is rented out for commercial purposes or when a residential property is rented out to a business.<\/span><\/p>\n<h3><b>9. Does a tenant need to pay GST if the landlord is not registered under GST?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No, if the landlord is not registered under GST, the tenant does not need to pay GST on the rent.<\/span><\/p>\n<h3><b>10. Does GST apply to maintenance charges paid along with rent?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, GST applies to maintenance charges paid along with rent for commercial properties or residential properties used for commercial purposes.<\/span><\/p>\n<h3><b>11. Is TDS on rent affected by GST?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">TDS on rent is a separate tax liability from GST and is not affected by the applicability of GST.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST impacts various sectors, including real estate, where rental services are subject to specific tax regulations. Knowing how GST applies to property rentals is essential for staying compliant and managing financial responsibilities effectively. This article breaks down the relevant GST rules for property rentals. What is the GST on Rent? Rent for commercial properties is<\/p>\n","protected":false},"author":151156612,"featured_media":13623,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3911,3912],"class_list":{"0":"post-12222","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-on-rent","9":"tag-gst-rate-on-rent"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156612"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12222"}],"version-history":[{"count":15,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12222\/revisions"}],"predecessor-version":[{"id":18446,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12222\/revisions\/18446"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13623"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}