In this article, we shall know about all tax provisions applicable to rent. There are 4 rates prevailing in GST, but on rent services GST will be applicable at rate of 18%. It is always said that half knowledge is always dangerous. Hence, just don’t charged GST on rent at specified rates.

Following are the cases on which no GST would be attracted:

1. Renting of Residential Dwelling

As per Notification No. 12/2017, rent paid on renting of residential dwelling unit for use as residence is exempted from the levy of GST. It may be noted that, the ultimate purpose should be used as residence. If it purpose is changed means if it given for commercial or official purpose then such transaction will definitely attracted under GST even though it is a residential dwelling.

2. Turnover is Within The Specified Limit

If income from renting of services & goods supplied is below the 20 lakhs, the landlord is not required to take registration under GST Act. Also, the landlord is not required to charge GST on such case. Hence, while paying the rent to the landlord, the recipient should ensure that the GST No. should be provided to the landlord if he charged GST, for the purpose of availing credit on it.

3. Rent Received by Charitable Trust

If a charitable trust or religious trust receives rent which is owned & managed by it and if

1. Such place is meant for public use
2. The rent of the room is below the Rs.1000 or less per day
3. Rent on shops & other spaces for business are charged Rs.10000 or less per month
4. Rent on community halls or open area is charged Rs.10000 or less per day

, then no GST will be attracted. If the rent is above the specified limit, then GST is required to be charged.

4. What is Turnover in GST?

Rent is considered as supply of services. Hence, while computing turnover for GST, rental income received from all properties should be included in turnover.