Rented house, now these tenants have to pay 18% GST

Rented house, now these tenants have to pay 18% GST

If the tenant is GST registered. Then GST will be charged on the rent paid by him. However, if both do not come under GST, then no tax will be levied.

• Changed rules regarding rental housing 
• Now these people have to pay GST 
• Know what the rule is 

Big news for home renters and renters. In the recent meeting of the GST Council, several rules related to GST were changed. Which includes rules related to house rent. GST is payable on house rent in certain situations as per the rules . 

According to the rules if the tenancy includes any individual or small business. Those who are registered under GST will have to pay GST on rent . So he has to pay GST on rent . However, the tenant can claim the GST paid as a deduction under Inpur tax credit. The new rules have come into effect from July 18. 

What are the changes in the rules?

• According to the rules, if you are employed and you have taken a house or flat on rent, you will not have to pay any tax on the rent. However, under the new rules, if a GST unregistered person rents his flat or property to a person registered under GST then GST will be applicable on this rent and under the reverse charge mechanism. Tenant has to pay 18% GST on rent . This tax is not applicable if the tenant is not put down under GST .
• On the other hand, if a company or individual gives its residential property to an employee for residential, guest house or office use, the employee or company that rents out that domestic property will have to pay 18 percent GST . Tenant has to pay GST .
• If a company has taken a residential flat for its employee and the landlord is not registered for GST, then even in such a situation the company has to pay 18 percent GST on the rent.
• If both landlord and tenant are not registered for GST. So in such case GST rule will not apply on rent.