gst rate on rental income with effect from 25 sept 2025

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....st rate on rental income with effect from 25 sept 2025<br> Query (Issue) Started By: - AIJAZ KAZI Dated:- 15-4-2026 Last Reply Date:- 20-4-2026 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>what is the gst rate on rental income both residential and commercial with effect from 25 september 2025 Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Dear Querist There is no chan....

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....ge in the rate of GST for renting of immovable property. SAC is 997212 and rate is 18% for renting of commercial immovable property and SAC is 997211 for renting of residential immovable property and the rate is 18% to be remitted by the tenant on reverse charge. Reply By YAGAY andSUN: The Reply: Position as on/after 25 09 2025 (post-GST rate revision wef 22 09 2025): 1. Residential rental....

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.... income Renting of a residential dwelling for use as residence continues to be exempt from GST under Notification No. 12/2017-CTR (as amended). However, taxability depends on the use and recipient: • If rented for residential use (personal dwelling) Exempt (Nil GST). • If rented to a registered person for business purposes Taxable @ 18% under Reverse Charge Mechanis....

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....m (RCM) (tenant pays GST). • If rented to a registered person in personal capacity for residence Still exempt (clarified position continues). Thus, the rate is effectively 0% or 18% depending on use, but no change in rate structure occurred in Sept 2025. 2. Commercial rental income (non-residential property) Leasing/renting of commercial property (shops, offices, warehouses, ....

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....etc.) is treated as supply of services and is taxable @ 18% GST. Key legal position post-Sept 2025: • GST rate remains 18% (no change after 22 09 2025 reforms). • Forward charge (FCM): Where landlord is registered landlord charges GST. • Reverse charge (RCM): • If unregistered landlord registered tenant (normal scheme) GST payable by tenant un....

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....der RCM (as amended up to 2025). 3. Impact of September 2025 GST changes The GST restructuring effective 22 September 2025 rationalised slabs (0%, 5%, 18%, 40%), but did not alter the taxation of renting services, which continue under the standard 18% rate or exemption. Conclusion (precise): • Residential rent (for residence): Exempt (0%) • Residential rent (for ....

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....business / to registered entity): 18% (generally under RCM) • Commercial rent: 18% (FCM or RCM depending on parties) No specific change in GST rate on rental income was introduced wef 25 09 2025; only the broader rate structure changed, leaving rental taxation substantively unchanged. Reply By Pinnacle Tax Advisor: The Reply: No change in GST rate on renting income. Rent from ....

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....commercial property is liable to GST @18% under FCM and residential property is liable to GST @18% under RCM if provided to registered person, else will come under exempt category. Reply By Shilpi Jain: The Reply: In general, If liable to GST the rate is 18%. However the taxability for renting of residential property has various aspects to consider before concluding RCM/FCM 18% / 12% / 5%<....

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