Ask three people whether GST applies on rent and you'll probably hear three answers. It mostly comes down to two things: what the place is used for, and who on each side has a GST registration. When it does apply, the rate is 18%. GST 2.0 left that alone.
The quick answer table
| Property and use | Landlord | Tenant | GST | Who pays it |
|---|---|---|---|---|
| House or flat, used to live in | Anyone | Individual or family | Exempt | Nobody |
| House or flat | Anyone | GST-registered business | 18% | Tenant, under reverse charge |
| House or flat taken by a registered proprietor in a personal capacity to live in | Anyone | Proprietor | Exempt | Nobody |
| Shop, office, godown | Registered | Anyone | 18% | Landlord adds it to the rent bill |
| Shop, office, godown | Unregistered | Registered (regular scheme) | 18% | Tenant, under reverse charge |
| Shop, office, godown | Unregistered | Registered under composition | Nil | Nobody |
| Shop, office, godown | Unregistered | Unregistered | Nil | Nobody |
Reverse charge on residential rent to registered persons applies from 18 July 2022. Reverse charge on commercial rent from an unregistered landlord applies from 10 October 2024, and composition taxpayers were taken out of it from 16 January 2025 (Notification 07/2025-Central Tax (Rate)).
GST on residential rent: a flat for your family
No GST. It doesn't matter if it's ₹15,000 in Hadapsar or ₹1.5 lakh in Koregaon Park. Your landlord also doesn't need a GST number for this income.
18% GST on house rent: when does it apply?
Only when the tenant holds a GST registration. A house let out as a residence to someone who isn't registered is exempt, and that covers almost every salaried family. If you draw a salary and rent a 2BHK in Baner, you pay nothing.
Things change when a registered business takes the flat, say as staff housing for a Hinjewadi team or a guest house. Since 18 July 2022 that rent carries 18% GST. The landlord's bill doesn't change at all; the tenant pays the tax itself under reverse charge (RCM) and can usually take it back as input credit. One carve-out: a registered proprietor who rents a flat in a personal capacity, just to live in, stays exempt.
GST on commercial property rent: shops, offices and godowns
Commercial rent is taxed at 18%. If your landlord is registered, the GST is on their invoice and they deposit it.
An unregistered landlord is where people slip. Since October 2024 a registered tenant on the regular scheme pays that 18% under reverse charge. Many small traders didn't notice, so it's worth looking back at your returns. Composition dealers got relief from 16 January 2025 and don't pay RCM on this rent.
GST on rent limit: when must a landlord register?
A landlord has to register once aggregate turnover, meaning rent plus any other service income, crosses ₹20 lakh in a year. In special category states the limit is ₹10 lakh. Three shops in Camp let at ₹60,000 a month each bring in ₹21.6 lakh a year, which is past the line.
Example: a kirana shop in Pune
Rent is ₹40,000 a month, landlord registered, both in Maharashtra.
| Monthly rent | ₹40,000.00 |
| CGST @ 9% | ₹3,600.00 |
| SGST @ 9% | ₹3,600.00 |
| Total on the rent bill | ₹47,200.00 |
|---|
That's ₹86,400 of GST in a year. A shop owner on the regular scheme sets it off against GST on sales. With an unregistered landlord the bill would read just ₹40,000, and the owner would deposit ₹7,200 a month under RCM.
Deposit, maintenance, electricity
A refundable security deposit isn't rent, so no GST when you pay it. If the landlord keeps some of it back against dues, that part can become taxable.
Maintenance billed with commercial rent usually goes at 18% too. Electricity passed on at actual cost, with the meter in your name, is treated differently. Society maintenance on a flat you own is a separate rule altogether: it kicks in above ₹7,500 per member a month, and only when the society crosses the turnover limit.
Frequently Asked Questions
Is GST applicable on rent of residential property?
What is the GST rate on rent on commercial property?
My landlord is not registered. Do I still pay GST on shop rent?
Did GST 2.0 change the rent rules?
Can I claim GST paid on office rent?
General information, not tax advice. For your own lease, check the agreement and speak to your CA. Sources: Notification 12/2017-CT(R) and 13/2017-CT(R) as amended by 04/2022, 05/2022, 09/2024 and 07/2025-CT(R); CBIC Circular 245/02/2025-GST.
Last reviewed 29 October 2026.