Government Gave Clarification Regarding GST on rent for business entities

GST

The Center on Friday issued a clarification regarding GST on house rent, stating that letting out a residential unit is taxable only if it is given to a business unit. Responding to news reports claiming that tenants will now have to pay 18 per cent Goods and Services Tax (GST) on house rent, the government’s official fact-checker said such claims are misleading.

PIB Fact Check clarified on Twitter that there will be no GST when a house is let out for personal use to a private individual, and not even if the owner or partner of a firm wants to rent the house for personal use. Is.

PIB Fact Check tweeted from its official handle, “Rent out of residential units is taxable only when it is let out to a business unit. No GST will be payable when it is rented out to a private person for personal use.” No GST will be levied even if the owner or partner of a firm is residing on rent for personal use.

GST registration is required when a person carries on business or profession and has an annual turnover exceeding the limit defined under the GST law.

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