Fact Check: Will 12% GST on house rent be introduced at the upcoming GST meeting?
A post in Tamil that claims that 12% GST on house and shop rents will be introduced at the upcoming GST Council meeting is being widely shared on social media. This statement has been attributed to Union finance minister Nirmala Sitharaman.
By Newsmeter Network Published on 5 April 2022 5:06 AM GMT
Hyderabad: A post in Tamil that claims that 12% GST on house and shop rents will be introduced at the upcoming GST Council meeting is being widely shared on social media. This statement has been attributed to Union finance minister Nirmala Sitharaman.
Fact Check
The Press Information Bureau of India has denied the claim and said the news is fake. In a tweet, it clearly stated that the finance ministry has made no such decision for the forthcoming GST Council meeting. The official Twitter account of Nirmala Sitharaman retweeted the tweet.
Currently, the GST on rent is 18% of the rent paid. GST is only levied on renting commercial property and not for renting residential property. According to Notification No. 12/2017, rent paid on renting of residential dwelling units for use as residence is exempted.
In other words, if a commercial property is rented for commercial use, then GST is levied but if a residential property is being rented for residential purposes, it is exempted from GST. However, if the residential property is rented for business use, then GST will be applicable. (Read more about it here and here)
As of now, there is no confirmation that 12% GST will be charged on rent for houses and shops.
