GST on Rent: Effective immediately, tenants must pay 18% GST! Government information was abundant.

Taxes On Rent: GST is the subject of ongoing news stories. As of July 18, the government has put new GST regulations into effect. You must pay an additional 18% GST on top of your rent if you are renting a residential property. For the past two days, this news has been spreading viral. It is now being said that in addition to the rent, the tenant would also be responsible for paying 18% GST. Inform me of any recent developments.

PIB Fact Check looked into this trending message. Following this, PIB dubbed this news as false. The report that there is an 18% GST on housing rent is wholly false, according to PIB Fact Check. Not only that, but the government’s statement on the matter has also come to light.

The administration offered an explanation.

“Rent of a residential unit is taxable only when it is given on rent to a GST registered firm for carrying on business,” wrote PIB in a tweet. Furthermore, it is made clear that no GST will be due if someone rents it out for personal use.

understand the law?

It is important to note that a person would be required to pay GST if they rent residential property for the sake of their business, according to information provided by the government following the GST meeting. Before, the only time someone had to pay GST on a lease as if they were renting an office or building for business purposes. People are actually protesting the higher rate since the GST summit.

According to the reverse charge system, if the transactions are made for commercial purposes, GST will be applicable and the renter will be responsible for paying GST of 18% on the rent in such circumstances. If the rented area is used for private purposes, GST is not applicable.

An expert made the situation clear.

Experts claim that a normal salaried individual is exempt from paying GST if they rent a residential home or apartment. While a GST-registered person or entity conducting business must pay 18% GST on the rent to the owner if they rent a residential home or apartment.

Read More: Best Saving Tips: You will get 50 thousand rupees monthly on an investment of 3500 every month, start investing today.

Join Our Group For All Information And Update, Also Follow me For Latest Information
YouTube	Click Here
Facebook Page	Click Here
Instagram	Click Here
Telegram Channel	Click Here
Google News	Click Here
Twitter	Click Here