Can i claim gst on rent

You can still contact us and get help. Contact us. Applications for the first 3 close on 1 December. Find out more. There's no GST to pay on rental income from long-term residential renting. You also cannot claim GST on your long-term rental expenses.

If the total value of services provided by the landlord during the financial year is less than Rs. For calculation of threshold limit of Rs. Let us understand this with various examples.

Example-1 : Mr Arjun has three commercial properties which are given on rent throughout the year. Rental Income of Mr Arjun Per year is as below. In the given case, Mr Arjun has to get registration under GST because his total yearly income from all the properties are exceeding Rs. Twenty lakhs even though his income from one property does not exceeds Rs. Example Mr Arjun has two commercial property and also doing the business of supply of goods which are taxable under GST.

In the given case, Mr Arjun has to get registration under GST because his total taxable income from the supply of service, i. For specified states, the threshold limit is Rs.

Further, it is important to note that for the landlord of the property it is not compulsory to get registration in the state where the immovable property is situated. He might be registered in a different state than the immovable property is located. For example, if the landlord is registered in Maharashtra and the property is located in Gujarat then for landlord it is not compulsory to get registration in Gujarat just because the property which is rented out is in Gujarat.

If the tenant is an unregistered person, then the government will collect GST under the forward charge mechanism. As per the GST Act, Place of Supply for services related to immovable property is the location of the immovable property. But if the landlord is registered in Maharashtra then it will be an inter-state transaction and IGST should be livable because place of supply is the location of the property which is in Gujarat.

The Invoice must be serially numbered and clearly show the place of the immovable property. For rental or leasing services involving own or leased residential property fall under SAC code Commission paid to property broker by the landlord is covered under GST.

GST is applicable even if the commission is paid for the residential property. In case of property management services, there is a middleman who works as a broker for getting new tenants for the landlord and also provide other services such as maintenance of such property.

The services provided by such person is a taxable service even if provided for residential houses. The property is used privately for some of the time.

Vacant for 62 days or more. The mixed-use asset rules apply. Work out GST under the mixed-use asset rules. The property is used privately some of the time. Not vacant for 62 days or more. The mixed-use asset rules do not apply. Claim GST on all expenses for income-earning use. Do not claim GST on private use expenses. Split shared rental expenses based on the days the property was used and available for use. Renting out a room. Updated on : Mar 12, - AM. Rent payment is one of those prominent expenses in any business.

GST is charged on rent in few cases. The implementation of Goods and Services Tax GST has chalked out a structured approach to collect taxes from various sectors. Rent has been the source of Income for many over the years. In this article, let us talk about the impact of the implementation of GST on rent, Let us also see if GST varies for commercial properties and residential properties.

Pre-GST, the landlord had to obtain a service tax registration if his total taxable services including the rental income from all properties exceeds Rs.

As long as the rental income from all the properties that have been rented-out does not exceed Rs 10 lakh per year, the landlord would not be attracted to service tax. Under the previous tax regime, commercial properties alone, that were let-out, would attract service tax. This applies even if a residential property is used for commercial purposes.

To add, rental income from residential properties did not attract service tax. According to the GST Act, renting out of an immovable property would be treated as a supply of services.