Is RCM applicable on rent paid to unregistered person?

If the supplier/landlord is an unregistered person, irrespective of the amount of rent paid section 9(4) will apply and the registered recipient of service shall be liable to pay GST under RCM and take credit of the same.

Do tenants have to pay GST on rent?

By rule, the landlord or owner of the property given on rent needs to collect applicable GST from the tenant or person paying rent. The amount of GST will be levied on the rent charged. The person paying the rent needs to deduct TDS at 10\%, in case the rental amount for the property is more than Rs. 1.80 lakh per year.

Who is liable to pay GST on flat?

Flat owners are liable to pay 18\% GST on residential property, if they pay at least Rs 7,500 as maintenance charge to their housing society. Housing societies or residents’ welfare associations (RWAs) that collect Rs 7,500 per month per flat, also have to pay 18\% tax on the entire amount.

How do I avoid GST on rent?

Only property let out for residential purposes will be exempt from the GST ambit. GST will be applicable when the rental income from commercial leasing is beyond Rs. 20 lakhs. When you rent out a residential property for residential purpose, it is exempt from GST.

What happens if RCM is not paid?

The person cannot take the plea that there is no revenue loss if he had not paid the RCM liability because if he pays RCM liability then the same time, he will avail input tax credit. It is not necessary if the person pays reverse charge liability, he is eligible for availing input tax credit.

Do landlords pay GST?

Usually, the landlord does not pay GST on rates issued by council. However, if rates are passed on by the landlord to the tenant for payment, then GST is payable by the tenant.

What is the GST rate on residential flats?

1. What are the new GST rates on the construction of residential apartments?

Rate	Description
	Ongoing affordable housing projects opting for new rates
5\%	Ongoing other than affordable housing projects
	New other than affordable housing projects
1\%	Projects with commercial space <15\% of total carpet area

Is GST applicable to landlord share of flats?

In my view, when the Real Estate Project is carried out by JDA, the allotment of under construction apartments or under developed plots by the developer to the landlord, as landlord’s share, cannot be treated as supply by the developer or by JDA within the meaning of Section 7 of the Central and State GST Act and hence …

How much rental income is non taxable?

The act allows exemptions up to ₹ 2 Lakh for self-occupied rented property, and for home construction loans, the exemption on interest can be earned in five instalments after the construction is completed.