#GST applicability on renting of resident unit:
CBIC by virtue of Notification No. 09/2017-dated 28th June 2017 exempted service of renting a residential dwelling used for the purpose of residence irrespective of the registration status of the supplier or the recipient of services as the case may be.
However, CBIC have issued Notification No. 05/2022
dated 13th July 2022, withdrew exemption on renting of residential
dwelling to a person registered under GST, which is applicable from 18th
July 2022.
Further, the onus of payment of GST on services by
way of renting of residential dwelling to a registered person is lies upon the
registered recipient of service, irrespective of the registration status of
service provider. As such renting of residential dwelling to a registered person
is added under the Reverse Charge Mechanism (RCM).
In other words, renting of residential dwelling by
any person to a person registered under GST than RCM will be applicable.
Exemption will be still applicable in case of services provided by registered /unregistered
to unregistered service receiver.
Below table for easy understanding:
Cases |
GST Applicability |
Registered service provider under GST to
un registered person-residential Unit |
Exempt |
Registered service provider under GST to registered
person- residential Unit |
GST under RCM @18% |
Unregistered service provider under GST
to unregistered person- residential Unit |
Exempt |
Unregistered service provider under GST
to registered person- residential Unit |
GST under RCM @18% |
Registered service provider under GST to
unregistered or registered person-Commercial Unit |
GST under Forward Charges @18% |
Unregistered service provider under GST
to registered or unregistered person- Commercial
Unit |
No GST |
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