Taxability of surrender of tenancy rights

[Prateek Jaju]

A religious trust, landowner, has rented its residential property to an individual for long term lease basis (widely known as pagdi system).

Now, the tenant is selling its tenancy rights to another individual.

As per the agreement, the new buyer will be transferring half amount to landowner and half amount to old tenant.

Will the receipt in the hand of landowner will attract GST ?

AI Summary

GST at 18% Applies to Transfer of Tenancy Rights, But Residential Rent Remains Exempt from GST. A religious trust, as a landowner, has rented a residential property under a long-term lease to a tenant who is now selling their tenancy rights to another individual. The new buyer will split the payment between the landowner and the old tenant. The question raised is whether the landowner's receipt will attract GST. The responses confirm that GST at 18% is applicable to the transfer of tenancy rights, as it is considered a taxable real estate service. However, renting a residential dwelling for use as a residence is exempt from GST.