Intern
2382 Points
Joined July 2013
GST is to be charged @ 18% on renting of property for commercial purpose if the total supply of the landlord exceeds Rs 20 Lakhs in the year. However, no GST is chargeable if a residential property is rented out for residential purpose. In pre-GST regime too, Service Tax @ 15% was chargeable if the total taxable services of the landlord exceeded Rs 10 Lakhs.
Introduction of GST has infact doubled the threshold limit for the people involved in the business of renting of properties for commercial purpose.
Tenants who are unregistered and who cannot utilise the tax paid as input would definitely prefer a landlord who would not charge GST as it would inflate their expenses.
However it cannot be concluded that GST is the reason for aggravation of complexities and has impacted the business of renting.