Taxability on Renting of Residential Flat

[GAURAV SHARMA]

The R.T.P is registered under GST & he has given one of his residential property on rent, if the tenant use the property for PG (Paying Guest) service.

What is the GST impact in the hands of landlords?

AI Summary

GST on Renting Residential Property for PG Services: Reverse Charge for Tenants, Forward Charge for Landlords. A discussion on the GST implications for renting a residential property used for paying guest services. The consensus is that if the tenant is registered under GST and uses the property commercially, they must pay GST under Reverse Charge Mechanism (RCM). However, if the landlord is registered, they must pay GST under forward charge on rent received. The nature of the rental agreement and any sub-letting clauses are crucial in determining tax liability. If the tenant operates commercially with a license, they must meet GST registration thresholds. The landlord's GST responsibility depends on the rental agreement terms.