This guide is in English for now. The tool itself works in your language.
Rent › GST on rent
GST on rent
Whether GST applies to rent depends on how the property is used, whether the landlord is registered and whether the tenant is a registered business.
The usual cases
| Case | GST |
|---|---|
| Shop, office or other business property, landlord registered | 18% charged by the landlord (SAC 997212) |
| House or flat let for living in, tenant is an individual | Exempt |
| Residential property let to a registered business or person (since 18 July 2022) | 18% payable by the tenant under reverse charge, with exceptions your accountant knows |
| Business property, landlord not registered, tenant registered (since 10 October 2024) | 18% payable by the tenant under reverse charge |
A landlord must register for GST when the total of GST-able supplies passes the limit for services (₹20 lakh in most states, ₹10 lakh in special category states). Rent of residential homes for living is exempt and does not count towards that limit.
What each option does in the maker
- No GST charged: the bill shows rent only.
- Landlord charges GST: you type the rate (usually 18). The bill becomes a tax invoice with SAC, CGST and SGST, or IGST. It needs your GSTIN. The state of the property decides CGST and SGST or IGST.
- Tenant pays under reverse charge: the bill carries no tax and says that the tenant pays it. The tenant reports and pays the GST in their own return; keep the tenant’s GSTIN on the bill.
Worked example
Shop rent ₹10,000 and maintenance ₹500 for one month, landlord registered: taxable ₹10,500, GST 18% = ₹1,890, bill total ₹12,390 (CGST ₹945 and SGST ₹945 inside the state).
Income tax is separate
A tenant who is a business may have to deduct income-tax (TDS) on rent. This tool does not work that out; ask your accountant.