Renting immovable property in India is a taxable service and would attract GST @18%. However, rental income from residential property is exempted from GST subject to certain conditions. In this article, we will discuss important aspects in regard to GST on rental income from shop, office, or residence. Hope you will enjoy reading this. ________________________________________ Renting in relation to immovable property means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of the immovable property. ________________________________________ Rental income from residential property As per entry no. 12 of exemption notification no. 12/2017 dated 28.06.2017, services by way of renting of residential dwelling for use as a residence are exempted from GST levy. However, this exemption notification shall not apply to renting residential dwelling for business purposes. Thus, a person has to pay GST on rental income from residential dwelling only if, (i) He is required to take GST registration, and (ii) Property is given on rent for commercial purposes. Illustration - • Residential property is given on rent to OYO for use as a hotel – Such transaction will not be eligible for exemption and thereby taxable. • Residential property is given on rent partly for commercial purpose and partly for residential purpose – Such transaction will be taxable. Rental income from commercial property Rent received from commercial property (shops, offices, land, etc) came under the Goods & Services Tax purview and would attract GST at the rate of 18%. Therefore, if earning of a commercial property owner exceeds the GST threshold limit, he will have to register under the Goods & Services Tax regime and pay taxes. Read more: https://www.taxgyata.com/ap/gst-on-rental-income/