No GST on residential buildings if rented for personal use: Government
New Delhi:
The government said Friday that GST will not apply to residential units if they are rented out to individuals for personal use.
The government rejected media reports claiming an 18 percent Goods and Services Tax (GST) will be levied on house rent paid by tenants.
In a tweet, the government said GST would only be levied when the property is rented out to a corporate entity.
“No GST when rented to a private individual for personal use. No GST even if the owner or partner of a business rents a home for personal use,” it said.
KPMG in India Partner Indirect Tax Abhishek Jain said the clarification provides relief to GST registered owners or partners in GST registered companies renting real estate for personal use such as renting a house for family accommodation.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
