Business

GST: From now on rented house will have to be paid tax

There are changes in the rules of GST every day. Till now, if a person with a GST number used to give his house on rent, then till now tax was not required to be paid, but from July 18, if such a person gives a room on rent, then he will have to pay RCM (Reverse Charge Mechanism) i.e. 18 percent to the GST taxpayer. Tax will have to be paid at the rate.

Let us tell you that due to the new rules of GST in the month of July, the burden of tax is going to come directly or indirectly on the common man in the coming days. Recently a circular has been issued, in which it has been told that from July 18, the rule of paying RCM at the rate of 18 percent has been implemented on the rent of the house by the GST taxpayer. Till now, when a house was given on rent and lived in it, no tax was levied on it. But in some cases it has also come to the fore that many people were doing business with the GST number at their doorstep.

Therefore, the possibility of the implementation of this rule cannot be ruled out. While some taxpayers were running an office at their home address by entering into a rental agreement, those taxpayers also come under the purview of this rule. But with this, the tax payer who rents the house is certain to be taxed at 18 percent.

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