New Delhi: The government announced on Friday that GST will not be levied on residential units if they are rented out to individuals for personal use.
The government contested the Goods and Services Tax (GST), which is 18% of rent paid by tenants. The administration said in a tweet that GST is charged only when the flat is rented out to a corporate organisation.
“No GST when rented out to an individual for personal use. No GST even if the flat is rented out for personal use by the business owner or partner,” it said.
Abhishek Jain, partner, indirect taxation, KPMG India, argued that the clarification will provide relief to GST-registered owners or partners of GST-registered businesses who rent out properties for their own use, such as renting out a home to a family.