Question
GST on rent: commercial vs residential property — who pays?
Answer
Bottom line: Commercial rent is taxable at 18%, a home let for residence is exempt, but a residential property rented to a GST-registered person falls under reverse charge.
1. Commercial property
The landlord charges 18% GST on the rent under forward charge.
2. Residential property
Renting a dwelling for residence to an unregistered person is exempt. But if the tenant is GST-registered, the tenant pays 18% under reverse charge (since 18 July 2022); composition taxpayers were carved out from 16 January 2025.
3. Watch the threshold
Commercial rent counts towards your ₹20 lakh registration limit.
Compute the GST with our GST Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.