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GST on Rental Income from Commercial Property

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GST on Rental Income from Commercial Property

Last updated: December 12 2019
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  • GST on Rental Income from Commercial Property

    I am renting my commercial property. Am I liable to pay GST?
  • #2

    #2

    Re : GST on Rental Income from Commercial Property

    Commercial rental income beyond Rs 20 lakh to attract GST, says Hasmukh Adhia

    Adhia also said that if the house property is rent out for shop or office purpose, no Goods and Service Tax (GST) will be levied up to Rs 20 lakh.

    PTI|
    Updated: Jul 11, 2017, 10.45 AM IST

    Read more at:
    //economictimes.indiatimes.com/articleshow/59539708.cms?from=mdr&utm_source=contentofinterest &utm_medium=text&utm_campaign=cppst
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    • #3

      #3

      Re : GST on Rental Income from Commercial Property

      Yes, According to the GST Act, renting out of an immovable property would be treated as a supply of services. GST, however, will be applicable only to certain types of rent such as:

      [ol]
      [li]When a property is given out on lease, rent, easement, or licensed to occupy[/li]
      [li]When any property is leased out (or let out) including a commercial, industrial, or residential property for business (either partly or wholly)[/li]
      [/ol]
      These type of renting is considered as a supply of services and thus would attract tax.

      For all commercial spaces that are on rent, GST will be applicable at 18% on the taxable value and rent would be treated as a taxable supply of service.

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