Q. GST on letting out residential property for residential purpose

Question

Sir

Client (Trader) registered under GST under composition scheme.

Client let out his residential property for residential purpose.

My first question - Is there any GST liability on rental income from above mentioned property?

My second question- Is there any GST liability on rental income if property uses for commercial purpose? If yes, GST paid under RCM or FCM

Answer 1

For residential use: No GST liability on rental income from the property rented out for residential purposes.

For commercial use: There is a GST liability on rental income if the property is used for commercial purposes. However, a trader under the composition scheme needs to assess their eligibility to rent out property for commercial purposes under GST, as it may necessitate a switch to regular GST registration to legally provide such a service.

Regards, CA. Praveen Sharma

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