If you live with a house on rent, then you will have to pay 18% GST. Now the government has clarified Archit Gupta, Founder, and CEO, of Clear, said, “If a normal salaried person has taken a residential house or flat on rent, they do not have to pay GST.
If you are living on rent in any residential property then you will have to pay 18% GST in addition to the rent... You must be hearing and reading such news for the past few days. This news became so viral among the people that now the government had to clarify it. Yes... The government has clarified the new GST rules on rent that came into force on July 18. The PIB Fact Check run by the government called this news fake. The news of 18% GST on house rent by PIB Fact Check is completely wrong.
In a tweet, PIB said that "Rent of residential unit is taxable only when it is given on rent to a GST registered company for carrying on business". It is further clarified that if a person takes it on rent for personal use, then no GST will be payable on it.
In fact, according to the meeting of the GST Council held last month, if a person rents a residential property for his business, then he will have to pay GST. Earlier, when someone used to lease an office or building for commercial work, only then does he have to pay GST on the lease.
Archit Gupta, Founder, and CEO, of Clear, said, “If a normal salaried person has taken a residential house or flat on rent, they do not have to pay GST. However, a GST-registered person or entity carrying on business, if they take a residential house fa flat on rent then they will have to pay 18% GST on rent to the owner.
