If you are living on rent in any residential property, then you will have to pay 18% GST in addition to the rent! Actually, this news is going viral once again that apart from the rent, the tenant will also have to pay 18% GST. Let’s know the latest update.
This news is again going viral on social media that apart from the rent, the tenant will also have to pay 18% GST. PIB Fact Check investigated this viral message. After this PIB called this news fake. PIB Fact Check has made it clear that the news of 18% GST on house rent is completely wrong. Not only this, let us tell you that the government’s statement has also come out on this.
Government gave clarification
Earlier in a tweet, PIB said, “Rent of a residential unit is taxable only when it is given on rent to a GST registered company for carrying on business.” It has been further clarified that if a person takes it on rent for personal use, then no GST will have to be paid on it.
Know the rules of GST
According to the information given by the government, if a person rents a residential property for the purpose of his business, then he will have to pay GST. Earlier, when someone used to take office or building on lease for commercial work, then only he had to pay GST on the lease. In fact, since the meeting of GST, people are protesting against the increased rate.
According to experts, if a common salaried person has taken a residential house or flat on rent, then he does not have to pay GST. While a GST-registered person or entity carrying on a business, if they take a residential house or flat on rent, they will have to pay 18 per cent GST on the rent to the owner.