The government said on Friday that GST would not apply to residential units if they are rented to individuals for personal use.
The government dismissed media reports that there would be an 18% goods and services tax (GST) on house rent paid by tenants.
In a tweet, the government said GST would only be levied when the residential unit is rented to a commercial entity.
“No GST when rented to a private person for personal use. No GST even if the owner or business associate rents the residence for personal use,” he said.
Abhishek Jain, KPMG India Partner, Indirect Taxation, said the clarification provides relief to GST-registered owners or partners in GST-registered businesses that lease real estate for their personal use, such as rental of a house for family accommodation.
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