The government on Friday said that GST will not apply to residential units that are let out for personal use.
The government rejected media reports that claimed there is an 18 per cent Goods and Services Tax (GST) on house rent paid by tenants.
In a tweet, the government said that GST will be levied only when the residential unit is let out to a commercial unit.
“No GST when it is let out to private person for personal use. No GST even if the owner or partner of the firm is residing on rent for personal use,” it said.
KPMG in India partner indirect tax Abhishek Jain said the clarification provides relief to GST-registered proprietors or partners in GST-registered firms, who rent immovable property for their personal use such as renting a house for family accommodation. But take it
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