Bhubaneswar: Amidst hike in Goods and Services Tax (GST) on essential commodities in India, a media report claiming 18% GST on house rent is doing the rounds on social media.
The media report claimed that the Centre has decided to impose 18 percent GST on housing rent for tenants across the country.
A tenant, who is registered under the GST, is required to pay Goods and Services Tax at 18 per cent for renting a property, according to the new GST rules effective from July 18, a media report said.
However, the report is not true, the Press Information Bureau (PIB) confirmed it in a tweet yesterday.
According to Fact Check arm of the PIB, the renting of a residential unit is taxable only when it is rented to a business entity.
Claim: 18% GST on house rent for tenants #PibFactCheck
▶️Renting of residential unit taxable only when it is rented to business entity
▶️No GST when it is rented to private person for personal use
▶️No GST even if proprietor or partner of firm rents residence for personal use pic.twitter.com/3ncVSjkKxP
— PIB Fact Check (@PIBFactCheck) August 12, 2022