GST on Rent Calculator
Instantly check GST applicability, Reverse Charge Mechanism (RCM) rules, and tax liability for commercial or residential property rent.
Frequently Asked Questions
Understanding GST implications on commercial and residential renting.
Is GST applicable on residential property rent?
Yes, if a residential property is rented out to a GST-registered person, it attracts 18% GST. This is payable under the Reverse Charge Mechanism (RCM) by the tenant. If rented to an unregistered person for personal use, it is exempt from GST.
Who pays the GST on residential rent under RCM?
Under RCM for residential property, the GST-registered tenant is legally liable to pay the 18% GST directly to the government, not to the landlord.
Can I claim Input Tax Credit (ITC) for GST paid on rent?
Yes, if you use the rented property for business purposes, you can claim ITC on the GST paid (both forward charge for commercial rent and RCM for residential rent).
Is GST applicable on commercial property rent?
Yes, commercial property rent attracts 18% GST under forward charge. The landlord must collect this from the tenant and deposit it with the government, provided the landlord's turnover exceeds the GST registration threshold (₹20 Lakhs in most states).
What if a GST-registered person rents a house for personal use?
If a GST-registered proprietor rents a residential property strictly for personal residence on their own account (not as a company expense), it is exempt from GST as per recent CBIC clarifications.
What is the GST rate on rent?
The standard GST rate on both commercial and residential property rent (when taxable) is 18%.
Do NGOs or charitable trusts have to pay GST on rent?
Renting of precincts of a religious place meant for the general public is exempt, subject to certain limits (e.g., room rent below ₹1,000/day, shop rent below ₹10,000/month). Otherwise, standard GST rules apply.
Does the landlord's turnover matter for residential rent GST?
No. For residential rent given to a registered person, RCM applies. The landlord's turnover or GST registration status is irrelevant; the registered tenant must pay the tax.
How do I pay RCM on rent?
You must pay RCM liability in cash via a GST challan (it cannot be paid using existing ITC). You declare this in table 3.1(d) of GSTR-3B and can claim it back as ITC in table 4(A)(3) in the same month.
Is TDS applicable along with GST on rent?
Yes, under Income Tax rules (Section 194I), TDS is applicable at 10% on rent (if it exceeds ₹2,40,000 annually). TDS is calculated on the base rent amount, excluding the GST component.