PIB clarifies that there is No GST applicable on renting of residential apartments to individuals.

There were unwarranted concerns on the changes brought around the GST applicability for renting apartments in case the tenant is registered under the GST law at the recent GST council meeting. We had highlighted that the concerns were overblown as it covered a specific circumstance where the tenant is a proprietor is registered under GST and may have to pay GST and not get the Input credit. [Link to the previous related post in the comments section]

However, it has now been clarified that even this particular situation will not come within the ambit of GST. GST will be applicable only in case residential apartment is rented to a business entity. This would include situations where apartments are given on company lease or for service apartments/guest houses.

This clarification from the government should put all concerns to rest on GST applicability on renting apartments.