is GST payable on rental income?

Hey

Many people have queries like “Is there GST on rental income?” Well, I recently found out that renting out an immovable property would be treated as a supply of services as per the GST Act. However, GST will be applicable only to specific types of rent like:

• When properties are given out on easement, rent, lease, or licensed to occupy

• When properties are leased out (or let out) including residential, industrial, or commercial property for business (either wholly or partly)

Now that you have an answer to your query on “Is GST payable on rental income?”, let me also tell you how much GST on rental income is there.

GST on Rent is taxed at 18 percent of the Rent paid. This GST will be SGST at  9 percent and CGST at 9 percent if the landlord is registered in the same state. IGST at 18 percent would be levied if the landlord is registered in a different state

In case the aggregate turnover of supply of services or goods or both during the year is below Rs. 20,00,000 during the financial year, then the landlord will be exempt from taking registration under GST.

The govt. has exempted the following rent of immovable property by notification:

• Renting of Guest House, Inn, Hotel, Club or Composite for the lodging and residential purpose having a value of Supply of a Unit below or equal to 1,000 per day

• Renting of Residential Dwelling used for residential Purpose

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Now you know about the GST on rental income.