Powered by: Motilal Oswal
12/08/2022 6:29:07 PM | Source: IANS
GST on rent for business entities, govt clarifies
News By Tags | #1806 #534
GST on rent for business entities, govt clarifies

New Delhi, Aug 12 (IANS) The Centre on Friday issued a clarification regarding GST on house rent, noting renting of a residential unit is taxable only when it is given to a business entity.

Responding to news reports, claiming that tenants would now have to pay 18 per cent Goods and Services Tax (GST) on house rent, the Government's official fact-checker said such claims were misleading.

PIB Fact Check clarified on Twitter that there would be no GST when a house is rented to a private person for personal use, and not even when the proprietor or partner of a firm wants to rent a residence for personal use.

"Renting of residential units taxable only when it is rented to a business entity. No GST when it is rented to a private person for personal use. No GST even if the proprietor or partner of a firm rents residence for personal use," PIB Fact Check tweeted from its official handle.

GST registration is needed when any person carries on business or profession and makes an annual turnover more than the threshold limit defined under the GST law.

Disclaimer: The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references. To Read Complete Disclaimer Click Here