Residential rent to individuals is generally exempt — but commercial property rent is taxable, and specific reverse charge rules apply when residential property is let to GST-registered tenants.
Last updated: June 2026
Renting out residential property for use as a residence to an individual is generally exempt from GST — you don’t charge GST on this rental income, regardless of your portfolio size. This exemption is specifically about the property being used as a dwelling by the tenant, not simply about the property type on paper.
Renting out commercial property (offices, shops, warehouses) is a taxable supply of services. Once your aggregate turnover from taxable supplies (including this rental income combined with any other business activity) exceeds ₹20 lakh, you must register for GST and charge 18% on the commercial rent.
No. Residential rental income for use as a dwelling is exempt and doesn’t count toward the GST registration threshold in this scenario.
This may fall under the reverse charge rule where the GST-registered tenant becomes liable for GST on the rent, rather than being exempt as ordinary residential letting — check the specific use case.
Yes, commercial property rent is a taxable supply and counts toward the ₹20 lakh aggregate turnover threshold like any other taxable business activity.
Generally yes, once GST-registered for the commercial rental activity, subject to normal ITC eligibility rules for the specific costs involved.
No, it’s the same ₹20 lakh threshold as any business — the key difference is simply that most residential rental income doesn’t count toward it because it’s exempt.
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