CA Pratibha Goyal | Jul 19, 2022 |
GST on Service by way of renting of residential Property
Notification No. 05/2022-Central Tax (Rate) has brought a new change in GST Regime. Earlier, Services by way of renting of residential dwelling for use as the residence was exempt from GST-wide notification Number Notification No. 12/2017-Central Tax (Rate). Same is now being covered in Ambit of GST through Reverse Charge Mechanism (RCM) vide Notification No. 05/2022-Central Tax (Rate).
Service by way of renting of residential dwelling given to a registered person by any person is covered by RCM.
Let’s Analyse the impact of this amendment through various Examples:
1. Service of renting of residential dwelling given to a registered person by a registered person be it for commercial or residential purpose
The same is covered by RCM vide Notification No. 13/2017-Central Tax (Rate) read with Notification No. 05/2022-Central Tax (Rate).
2. Service of renting of residential dwelling given to a registered person by an unregistered person be it for commercial or residential purpose
The same is covered by RCM vide Notification No. 13/2017-Central Tax (Rate) read with Notification No. 05/2022-Central Tax (Rate).
3. Service of renting of residential dwelling given to an unregistered person by an unregistered person for residential purpose
The same is still exempt from GST-wide notification Number Notification No. 12/2017-Central Tax (Rate).
4. Service of renting of residential dwelling given to an unregistered person by an unregistered person for commercial purpose
No GST will be applicable if the Aggregate Turnover of the Service supplier is Less than 20 Lakh.
5. Service of renting of commercial property given to an unregistered person by an unregistered person
No GST will be applicable if the Aggregate Turnover of the Service supplier is Less than 20 Lakh.
6. Service of renting of commercial property given to a registered person by an unregistered person
No GST will be applicable if the Aggregate Turnover of the Service supplier is Less than 20 Lakh.
7. Service of renting of commercial property given to a registered person by a registered person
Transaction will be covered by Forward Charge Mechanism.
8. Service of renting of commercial property given to an unregistered person by a registered person
Transaction will be covered by Forward Charge Mechanism.
9. Service of renting of residential dwelling given to an unregistered person by a registered person for residential purpose
The same is still exempt from GST-wide notification Number Notification No. 12/2017-Central Tax (Rate).
10. Service of renting of residential dwelling given to an unregistered person by a registered person for commercial purpose
Transaction will be covered by Forward Charge Mechanism.
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