18% GST on house rent soon? Government says reports are 'misleading'

GST registration is needed when any person carries on business or profession and makes an annual turnover more than the threshold limit defined under the GST law.

Published: 12th August 2022 06:42 PM  |   Last Updated: 12th August 2022 06:47 PM   |  A+A-

GST

Representational Image. (File | EPS)

By IANS

NEW DELHI: The Centre on Friday issued a clarification regarding GST on house rent, noting renting a residential unit is taxable only when it is given to a business entity.

Responding to news reports, claiming that tenants would now have to pay 18 per cent Goods and Services Tax (GST) on house rent, the Government's official fact-checker said such claims were misleading.

PIB Fact Check clarified on Twitter that there would be no GST when a house is rented to a private person for personal use, and not even when the proprietor or partner of a firm wants to rent a residence for personal use.

"Renting of residential units taxable only when it is rented to a business entity. No GST when it is rented to a private person for personal use. No GST even if the proprietor or partner of a firm rents residence for personal use," PIB Fact Check tweeted from its official handle.

GST registration is needed when any person carries on business or profession and makes an annual turnover more than the threshold limit defined under the GST law.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp