GST on rented house: Govt clarifies on new rule on residential properties

New Delhi: The opposition on Friday slammed the government over an 18 per cent GST being levied on rents. The government clarified that rent of residential units will be taxable only when it is rented to a business entity.

Sharing a tweet by a Delhi Congress leader on 18 per cent GST on rents, party leader Jairam Ramesh said: "After senseless GST on food items of daily consumption, now this."

Trinamool Congress leader Saket Gokhale tweeted saying that house rents will go up by 18 per cent. "Why? Because the Modi govt will now be charging GST to tenants on their house rent."

"Amidst a massive price rise, the cruel money-grabbing Modi govt is determined to squeeze every penny out of the pockets of ordinary Indians," he said.

The Press Information Bureau's Fact Check team said there will be no GST on properties rented for residential use by a private person.

It also said that GST would not be levied even if a proprietor or partner of firm rents a residence for personal use. (UNI)