GST on renting for dwelling and for commercial purposes

Renting of residential dwelling to normal individuals is exempted service as per Notification no.12/2017-CTR and thus no GST is payable by the tenants.

However, renting premises for office space attracts GST at 18% if the business turnover of the person giving the premises on rent exceeds Rs 20 lakhs per annum.

Tax is payable to the Government by the service provider after collecting tax amount from the tenant as GST is an indirect tax.

However, registered tenants who pay rents for their residential dwelling from business expenses are made liable to pay 18% GST on reverse charge basis from 18.7.2022 onwards as per Notification no.13/2017-CTR as amended.