Now Tenants Will Have to Pay 18% GST

What does the new GST rule mean for tenants?

The new GST rule means that tenants will now have to pay 18% GST on the rent they pay to their landlords. This new rule will come into effect from 1st July 2023. This is a significant change from the previous GST rate of 5%, which was applicable on residential rents.

Who is responsible for paying GST on rent?

As per the new GST rule, the tenant will be responsible for paying GST on the rent. The landlord will be required to collect GST from the tenant and deposit it with the government.

How will GST be calculated on rent?

GST on rent will be calculated on the gross rent amount, excluding any charges for electricity, water, or other utilities. The gross rent amount is the total amount of rent that the tenant pays to the landlord.

What are the implications of the new GST rule for tenants?

The new GST rule will have a significant impact on the cost of renting for tenants. Tenants will now have to pay an additional 13% GST on their rent, which will increase their monthly expenses. Moreover, the new GST rule is expected to lead to an increase in rents, as landlords may pass on the additional GST cost to their tenants.