GST UPDATE

*Desk of CA. PRAVEEN SHARMA:-* 

Series- *373.*

*Only GST-registered tenants face rent tax*

_18% GST Rate for Residential Rent_

1. GST has been introduced on 18.07.2022 on rent/lease  paid for a residential property.

2. In the case of the levy, it's a tenant who has to bear the burden under RCM (If the tenant is registered).

3. The levy is not applied to tenants who are not registered for the GST.

4. Point no 3 includes salaried individuals and small businesses whose turnover is below the threshold.

*Scenario-1*

A practicing professional who is registered under GST has taken a residential flat on rent from URD for himself and his family- RCM is not applicable if rent is not claimed as an expenditure.

*Scenario-2*

A practicing professional (Registered under GST) has taken a residential flat on rent for his office- GST would be applicable under RCM.

*Scenario-3*

A corporate entity has taken a residential flat on rent for its KMP from a URD individual- GST would be applicable under RCM.

_Major PSU and corporate will fall under GST under this scenario and a major burden on it_

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