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GST on Residential Rent from 18th July 2022

"Are you residing in a rented houseu00a0? If answer is YES Don't miss this important GST updates The government has brought new GST rules from 18th July 2022 for"<br>TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Lawu00a0, Goods and Service Tax etc.<br>To know more visit https://taxguru.in/goods-and-service-tax/gst-on-residential-rent-18th-july-2022.html

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GST on Residential Rent from 18th July 2022

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  1. GSTONRESIDENTIALRENTFROM18THJULY2022 AUTHOR:PANKAJKANNAUJIYA@YAHOO.COM https://taxguru.in/goods-and-service-tax/gst-on-residential-rent-18th-july-2022.html Areyouresidinginarentedhouse? IfanswerisYES Don’tmissthisimportantGSTupdates The government has brought new GST rules from 18th July 2022 for ‘Renting of Residential Property’. As per notifications 05/2022 (Central Tax Rate) dated 13 July 2022, ‘Service by way of renting of a residential dwellingto a registered person isalso taxable. But we need to understand the new applicability rules because this tax would not be levied in a normal system (forwardcharge), it willbe levied ona Reverse chargeMechanism (RCM) basis WhatisReversechargeMechanism(RCM)? Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplierof such goodsor services in respectof notified categoriesof supply. Throughnotifications05/2022(CentralTaxRate)dated13July2022,thefollowingentrieshavebeennewly insertedin thelist ofservices that attractGST onRCM basis(Original Notification 13/2017)

  2. Supplierof Recipient of Service Sr CategoryofSupplyofServices Servicebywayofrentingof 5AAresidentialdwellingtoa registeredperson. Service Any registered person Anyperson SUMMARYOFTHEPROVISIONS RegisteredunderGST NOTRegisteredunder GST NOGSTLiability LANDLORD NOGSTLiability – Liablefor18%GSTon Rent TENANT RegisteredunderGST NOTRegisteredunder GST NOGSTLiability Itisveryclearthattheconditions&responsibilitiesareofthetenantonly.ThePropertyOwner/landlordis notliable for any circumstance forthis liability Thus,ifyouareregisteredunderGoods&ServiceTaxandtookaresidentialplaceonrent,thenyouneedto paythe 18% GST on Rentfrom 18 July 2022. Pleasenotethat,ifthelandlord/ownerisregisteredunderGST,itwillnotreduce/removetheliabilityof thetenant. Tenants haveto paycompulsorythe GST ona reverse chargebasis FewImportantpointsrelatedtotheabovetopics ifyourunningafirm/company(otherthanaproprietaryfirm)&takenGSTregistration,thenyouarenot considereda registeredperson unless youhave taken theGSTIN on yourPAN. The purposeoruseofrentedpremisesisnotrelevanthere,whetherit isrentedforbusinessorpersonal GSTwillbeleviediftheaboveconditionissatisfied. IfyouhaveGSTINonyourPANandhavetakentherentedresidentialpremises,pleasecheckthenamein therent agreement and dischargethe tax accordingly

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