Hi,
Rent is one of the most visible expenses in any business. In a few instances, GST is levied on rent. Let's take a closer look at the impact of GST on rental income from residential property:
Rental income from residential property under GSTThe Goods and Services Tax (GST) has established a systematic strategy to collect taxes from diverse sectors. Many people have relied on rent as a source of income over the years. Let us discuss the impact of the GST implementation on rent in this post, as well as if GST differs for commercial and residential buildings.
GST on rent from residential propertyRenting out an immovable property would be considered a provision of services under the GST Act. GST, on the other hand, will only apply to specific types of rent, such as:
When a property is leased, rented, eased, or licenced to occupy, it is referred to as a lease, rent, easement, or licence to occupy.
When any property is leased out (or let out) including a commercial, industrial, or residential property for business (either partly or wholly). This type of renting is considered as a supply of services and would thus attract tax.
When you rent out a residential property for residential reasons, it is free from GST. As a supply of service, any other sort of leasing or renting out of immovable property for business would be subject to GST at 18 percent.
I hope this answer would help you with getting an idea about GST on rental income from residential property.
Check out NoBroker rental agreement service.Read More:
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Authors Of The Question
Is GST Applicable On Rental Income From Residential Property?
Ashish
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1 Answers
2 Year
2022-03-04T19:18:27+00:00 2022-03-04T19:33:58+00:00Comment
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