Business

Tax not to be paid on every rented house, GST for business or company will have to be paid on rent only

In the recent meeting of the GST Council, many rules related to GST were changed.

Recently, the GST Council had talked about levying GST on rented houses. Now there’s an update on that rule. In the recent meeting of the GST Council, many rules related to GST were changed. These include rules related to house rent.

Let us tell you that according to these rules, you will not have to pay GST on renting every house, but in certain situations, you will have to pay GST on the rent of the house. Including renting a house for business or to a company. According to the rules, if a tenant, which can include any individual or small business, is registered under GST, then he will have to pay GST on the rent. However, the tenant can claim the GST paid as deduction under Input Tax Credit. On the other hand, if the house is being taken on rent for its own use, then no tax will be levied. According to the rules, if you are employed and you have rented a house or flat for your own use, then you will not have to pay any GST on the rent. The new rules have come into effect from July 18.

Let us tell you that on this rule that came earlier, people had given their own reactions on social media. On this, the government made it clear that this GST will not be applicable to all the people. GST will be applicable only if the property is let out to a business. That is, the tenant uses this property for business. In fact, after the news, such things started coming on social media, which seemed that all the tenants would have to pay extra money, although it is not so.

It is worth noting that under the new rules, if both the landlord and the tenant are not registered in GST, that is, they do not do business. So in such a case the rule of GST on rent will not be applicable. On the other hand, if a GST unregistered person such as a salaried or small businessman gives his flat or property on rent to a company registered under GST, then GST will be applicable on this rent and the tenant will have to pay GST of 18 percent on the rent, but if the tenant If you are not registered under GST then this tax will not be applicable. On the other hand, if a company or person gives its residential property for the use of the employee’s residence, guest house or office, then that employee or company which is taking that residential property on rent, will have to pay GST of 18 percent. This GST will have to be paid by the tenant. On the other hand, if a company has taken a residential flat for its employee and the landlord is not registered in GST, then in such a situation also the company will have to pay 18 percent GST on rent.

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