GST On Rent: 18% GST to be paid on rented house too? Government made big announcement
Newz Fast, New Delhi: In a tweet by PIB, it has been said that 'Rent of residential unit is taxable only when it is let out to a GST registered company for business purposes'.
News about GST is going viral on social media. In these news going on social media, it is being claimed that the government has changed the rules of GST from July 18. If you live on rent, you will have to pay 18% GST in addition to the rent.
Reality revealed in PIB fact check
If the claim of this message is to be believed, then in lieu of rent of Rs 10,000, you will have to pay Rs 11,800 along with 18% GST. When this viral message was investigated by PIB Fact Check, this news was said to be completely fake.
It was told by PIB Fact Check that the news of 18% GST on house rent is baseless. Apart from this, the statement of the government has also come on this.
No GST payable on personal use
A tweet by PIB said that 'Rent of a residential unit is taxable only when it is let out to a GST registered company for business purposes'.
It has also been clarified that if someone takes it on rent for personal use, then no GST will be payable.
What is the rule?
According to the information given by the government after the GST meeting, if a person takes residential property on rent for business, then it is necessary to pay GST.
According to experts, GST is not payable on renting a residential house or flat of salaried class. GST is required to be paid only when the registered person or entity carries on business.