Rental income beyond Rs 20 lakh to attract GST @18%
Rental income from residential property has been exempt from GST but earning over Rs 20 lakh annually from renting or leasing for commercial purposes would attract the levy, so house property is let-out for shop or office or for commercial purposes, no GST will be levied up to Rs 20 lakh. The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes.
As per the rates notified by the Government as approved by the GST Council specifically exempts services by way of renting of residential dwelling for use as a residence.
Hence, it does not exempt renting of immovable property for commercial, shop or office purposes.
Accordingly, the same is taxable at 18% GST,
It was clarified that “GST is leviable only if aggregate turnover is more than 20 lakhs. (Rs. 10 Lakhs in 11 Special category States) For computing aggregate supplies, turnover of all supplies made by you would be added.”
As per GST Law, No GST is payable on Services by a person by way of renting of precincts of a religious place meant for general public. So the rate of GST payable on Services by a person by way of renting of precincts of a religious place meant for general public is Nil rated.
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