18% GST on House Rent Clarified

Banksdetail.com

The government's official fact-checker today responded to social media posts claiming tenants would now have to pay 18% GST on house rent.

When a house is rented to a private person for personal use, there will be no GST. 

In addition, GST would not apply to a firm's proprietor or partner renting a residence for personal reasons.

Renting a residential unit to a business entity, however, will become taxable.

The rent of a residential unit is taxable only if it is rented to a business entity. 

When rented to a private individual for personal use, there is no GST. 

There is no GST even if the proprietor or partner of a company rents a residence for personal use," PIB Fact Check tweeted.