Is 18% GST levied on house rent for residential use?
GST Council has notified to pay 18% GST on house rent.
A piece of information is going viral on social media that the GST Council has announced that everyone will have to pay 18% GST tax while paying house rent. It was seen that the DMK supporters were also sharing the information.
What is the truth?
As per the recommendation of the 47th GST Council held on June 29, 18% GST has been levied on house rent for commercial use. But, it is not for everyone living in a rented house.
GST was levied on the rent of buildings for office and public use. But now GST has been levied on those who engage in business by renting out houses.
If an individual or a company is registered under GST on rent of a residential building, 18% GST is payable on the rental amount. It has also been informed by the government that this is not for residents who are living on rent.
Claim: 18% GST on house rent for tenants #PibFactCheck
▶️Renting of residential unit taxable only when it is rented to business entity
▶️No GST when it is rented to private person for personal use
▶️No GST even if proprietor or partner of firm rents residence for personal use pic.twitter.com/3ncVSjkKxP
— PIB Fact Check (@PIBFactCheck) August 12, 2022
The GST Council’s notification to pay 18% GST on house rent is wrongly spread. GST is levied at 18% on rent to an individual or company renting out a residential house for commercial use and not on all residential houses for rent.