GST on Rent in India — Residential & Commercial Rules (2026)
Whether rent attracts GST depends on what is rented and who the tenant is. Residential property let to an individual for their own home is exempt. Commercial property is taxed at 18% once the landlord crosses the ₹20 lakh turnover threshold, and reverse-charge rules can shift the GST liability onto a registered tenant. This page explains every case and lets you calculate the GST on a rent figure.
🏢 GST on a Rent Amount
When GST Applies to Rent
| Situation | GST | Who pays it |
|---|---|---|
| Residential property rented to an individual (own residence) | Exempt (0%) | — |
| Residential property rented to a GST-registered business | 18% | Tenant, under reverse charge (RCM) |
| Commercial property — landlord registered | 18% | Landlord charges it (forward charge) |
| Commercial property — landlord unregistered, tenant registered | 18% | Tenant, under reverse charge (since Oct 2024) |
GST on commercial rent only enters the picture once the landlord's aggregate turnover (rent plus any other taxable supply) exceeds ₹20 lakh a year (₹10 lakh in some special-category states). Below that, the landlord need not register and no GST applies.
Residential rent: the reverse-charge twist
Since July 2022, when a residential dwelling is rented to a GST-registered person, the tenant pays 18% GST under the reverse charge mechanism (RCM) — not the landlord. A later clarification exempts the case where a proprietor rents a residence in a personal capacity for their own use. For an ordinary individual renting a flat to live in, there is no GST at all.
Commercial rent and input tax credit
A registered business tenant paying 18% GST on commercial rent can usually claim it back as input tax credit, so the GST is cost-neutral for them. The 18% is charged on the rent value; for a worked split of any GST-inclusive figure, use our reverse GST calculator, and for general rate questions the main GST calculator.
TDS on rent is separate from GST
Don't confuse GST with TDS. Tenants paying rent above ₹50,000/month (individuals) must deduct 2% TDS on the rent under Section 194-IB; businesses deduct under 194-I. That TDS is income tax withheld for the landlord and is entirely separate from the 18% GST discussed here.