Govt clarifies on the new rule of GST on Residential Properties

Government has clarified that the new rule on levying 18% Goods and Services Tax (GST) on house rent for tenants is applicable to business entities only. A tweet by the official twitter handle of the Press Information Bureau has stated that the levy is applicable in case of renting of residential units to business entities only and the levy would not be applicable when it is rented to a private person for personal use.

The fact-checking arm of the Press Information Bureau on Friday tweeted that reports claiming 18% GST on house rent for tenants are misleading.

PIB Fact Check clarified on Twitter that there would be no GST when a house is rented to a private person for personal use, and not even when the proprietor or partner of a firm wants to rent a residence for personal use.

“Renting of residential units taxable only when it is rented to a business entity. No GST when it is rented to a private person for personal use. No GST even if the proprietor or partner of a firm rents residence for personal use,” PIB Fact Check tweeted from its official handle.

Category: snjca

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