All About GST on Renting of Residential House Property

A. Before the amendment w.e.f. 18.07.2022, if a person gives his residential property to any person for residential purpose is exempted from GST vide Sl. No. 12 of Notification No. 12/2017-CT (Rate) dated 28.06.2017.

But if residential property has been given on rent for ‘Commercial Purposes’ than it was not an exempt supply and service is covered under ‘Forward Charge’ basis i.e. supplier has charge GST on rent.

Now after amendment w.e.f 18.07.2022 as per Notification No. 04/2022-CT (Rate) dated 13.07.2022 (w.e.f. 18.07.2022) the aforesaid exemption given by Sl. No. 12 of Notification No. 12/2017-CT (Rate) dated 28.06.2017 has been restricted.

Sl.No.	Chapter	Description of Services	Rate (%)	Condition
12	Heading 9963 Or Heading9972	Services by way of renting of residential dwelling for use as residence except where the residential dwelling (House property) is rented to a registered person	Nil	-

Interpretation: -

• Exemption is withdrawn on Renting of Residential House property for Use as Residence to Registered Person

• No such exemption from starting on Renting of Residential Dwelling for use “Other than Residence”

B. Government has also amended the original Notification No. 13/2017-CT (Rate) dated 28.06.2017 by way of issuing a new Notification No. 05/2022-CT (Rate) dated 13.07.2022. As per this new Notification, a new service has been added 5AA in Notification No. 05/2022-CT (Rate) dated 13.07.2022.

Sl. No.	Category of Supply of Services	Supplier of service	Recipient of Service
5AA	Service by way of renting of residential dwelling to a registered person.	Any person	Any registered person

Interpretation: -

• With this notification, RCM is applicable on Renting of Residential Dwelling to Registered Person

SCENARIO-1

Sr. No.	Description of Services	Service Provider	Service Recipient	Taxability	Forward Charge	Reverse Charge
1	Services by way of renting of residential dwelling for use as residence	Unregistered	Unregistered	No	-	-
2	Services by way of renting of residential dwelling for use as residence	Unregistered	Registered	Yes, Under RCM	-	Yes
3	​Services by way of renting of residential dwelling for use as residence	Registered	Registered	Yes	-	Yes
4	Services by way of renting of residential dwelling for use as residence	Registered	Unregistered	No	-

SCENARIO-2

​Sr. No.	Description of Services	Service Provider	Service Recipient	Taxability	Forward Charge	Reverse Charge
1	Services by way of renting of residential dwelling for use as other than residence	Unregistered	Unregistered	No	-	-
2	Services by way of renting of residential dwelling for use as other than residence	Unregistered	Registered	Yes, Under RCM	-	Yes
3	Services by way of renting of residential dwelling for use as other than residence	Registered	Registered	Yes	-	Yes
4	Services by way of renting of residential dwelling for use as other than residence	Registered	Unregistered	Yes	Yes

THIS IS PERSONAL VIEW, VIEW MAY BE CHANGE FROM PERSON TO PERSON. THIS AMENDMENTS REQUIRE MORE RCLARIFICATION BY CBIC WE ARE READY TO DISCUSS MORE ABOUT THIS MATTER FOR BETTERMENT