18 per cent GST on rent now applicable to tenants

The 18 per cent tax on rent paid is only applicable to tenants registered under the GST.

The tenant can claim the GST paid under Input Tax Credit as a deduction.

Earlier, only commercial properties like offices or retail spaces given on rent or lease attracted GST.

As per the new rules, a GST-registered tenant will be liable to pay the tax.

The new changes, implemented after the 47th meeting of the GST Council, will impact the companies and professionals who have taken residential properties on rent or lease.

The rent paid by companies towards the housing properties taken on rent to be used as guest houses or residences for employees will now attract 18 per cent GST.

Separately, the government said GST will not be applicable on residential units if they are rented out to private persons for personal use.