Reverse charge Impact of GST on Rent . You do not have to register, file or claim GST for your rental income or expenses. ITC – no GST / HST input tax credit; Specific rules apply to GST/HST on purchase and sale of residential rental properties. However, the GST regime treats renting out of residential property for business purposes as supply of services, thus, including rental income under its purview. GST is chargeable on the sale or lease of furniture and fittings in the residential property. This includes leasing out commercial and residential property for commercial purposes, either fully or partially. If yes who would be liable to pay GST. 12 of the Exemption Notification depends upon whether the dwelling unit is used as residence. Check out tax by rental property type to see what to do for your property: Tax by rental property type. Ruling– The Applicant’s service is classifiable as rental or leasing service involving own/leased residential property. An 18% GST on residential flats is charged on such rental income under the new regime, if the rent amount per year exceeds Rs 20 lakhs. GST on Rent for Residential Property; 1. However, residential properties given on rent for business purposes come under the ambit of GST and therefore are subject to GST. In this article, we will discuss about the applicability of GST on Rental Income from renting the commercial property as well as residential property, and we will also see various examples on inter-state and intra-state transactions. Changing any non-residential property into a property meant for residential purposes; Land that can be leased to another individual. 2.4 GST is claimable on the purchase and rental of non-residential property if the property is used or will be used to conduct business activities which will in turn, generate taxable supplies. No GST, No HST on residential property income. Residential rental income from renting out long-term is exempt from GST. Any other type of lease or renting out of immovable property for business would attract GST at 18 %, as it would be treated as a supply of service. Whether it will make any difference if the commercial entity uses this rented residential property for the purposes of residence of its employees. Whether GST will be applicable if a residential property is given on Rent to Commercial entity. GST on Renting of Immovable Property for Commercial Purpose One of the major changes brought about by the introduction of GST is the subsuming of different taxes imposed separately on goods and services. Applicability of GST on Rent The basic definition of outward supply includes rental income in the ambit of supply. You may have GST to pay on income you get from renting out residential property short-term (for example through Airbnb, Bookabach or Holiday Houses) because it’s a taxable activity. residential property is exempt from GST. There's no GST to pay on rental income from long-term residential renting.You also cannot claim GST on your long-term rental expenses. The implementation of Goods and Services Tax (GST) has chalked out a structured approach to collect taxes from various sectors.. Real property may consist partly of residential property used solely in the course of exempt supplies (usually the supply of long-term residential accommodation) and another part that is being used for non-residential purposes. Rent has been the source of Income for many over the years. In re Borbheta Estate Pvt Ltd (GST AAR West Bangal) Whether renting a residential property for residential purpose to a company is an exempt supply under GST? GST and renting out residential property . 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