and if the person is in the business of renting residential and commercial properties than what

[AIJAZ KAZI]

and if the person is in the business of renting residential and commercial properties than what

Is income from rent on residential income exempted under gst though the business is of renting of properties residential and commercial

[YAGAY andSUN]

Short answer: Yes - even if a person is in the business of renting properties, residential rent can still be exempt under GST, but only when strict conditions are met.

1. Residential property (key rule remains unchanged)
Under GST law, exemption depends on nature of use, not the nature of business of the landlord.

• Renting of a residential dwelling for use as residence Exempt (Nil GST)
• This exemption applies even if the landlord is in the business of renting properties (i.e., it is not lost merely because renting is a business activity)

So, being in the "business of renting" does NOT make residential rent taxable automatically.

2. When residential rent becomes taxable

The exemption is lost in these cases:

• If rented for commercial/business use (e.g., office, guest house, clinic) 18% GST applies
• If rented to a registered person for business purposes 18% GST under Reverse Charge (RCM) (tenant pays tax)

3. Commercial properties

• Renting of commercial property always taxable @ 18% GST, regardless of whether renting is occasional or a business

4. Important legal principle

GST classification is based on:

• Type of property (residential vs commercial)
• End use (residential vs business)

-not on whether the taxpayer's main business is renting.

Conclusion

Even if a person is engaged in the business of renting both residential and commercial properties:

• Residential rent (used as residence) Exempt under GST
• Residential rent (used for business) Taxable @ 18% (typically RCM)
• Commercial rent Taxable @ 18%

[AIJAZ KAZI]

and if suppose a person takes residential property on heavy deposit from some one say landlord and than gives the same property to some other person on rent than what will the gst tax structure in this case.

now here according to me rcm will be applicable to the person who has taken residential property on rent from landlord and given the same residential property to some other person on rent and because the property is residential he cannot charge gst fromt the person he has given on rent ,than the rcm paid by him is total loss for him.Am i right please help me out or can he charge gst from person he has given property on rent under fcm after getting registered under gst

[Pinnacle Tax Advisor]

If person is in the business of renting of residential and commercial property, he will be liable to charge and pay the GST on commercial property. Rent of residential property will be under exempt category in his hand. But if residential property is provided on rent to any registered person than registered person will be laible to pay GST under RCM.

If you take the residential property on lease and than sub lease the property, being a registered person, you will be liable to pay GST under RCM. And in later transaction, sub-tenant will also be liable to pay under RCM, provided that dwelling is used for residential purpose only, not for commercial purpose

[Shilpi Jain]

Renting of residential property is exempt of it is for use as residence and rented to unregistered person.

AI Summary

Residential dwelling exemption under GST depends on end use, while business use and commercial rent remain taxable. Renting of a residential dwelling for use as residence is exempt under GST, and the exemption depends on the nature of the property and its end use rather than on whether the landlord is in the business of renting. Residential rent used for business purposes becomes taxable, and renting to a registered person for business use attracts GST under the reverse charge mechanism. Commercial property renting remains taxable at 18% GST. In a lease-and-sublease arrangement, the tax position also turns on residential use, business use, and registration status.