The recent Goods and Services Tax (GST) amendment in India will have a significant impact on those who rent residential property. The amendment, which came into effect on 1 April 2019, will change the way property is taxed in India. This, in turn, is likely to lead to an increase in rental prices for tenants. In this blog post, we'll take a look at how the GST amendment will affect renting of residential property in India, both for landlords and tenants.
 
How is GST affecting rent of residential property in India
How the GST amendment will change the way property is taxed in India
The recent Goods and Services Tax (GST) amendment will change the way property is taxed in India. Currently, properties are taxed under the Value Added Tax (VAT) system. However, with the new GST amendment, properties will now be taxed under the GST regime. This means that property owners will have to pay GST on their rental income, as well as on any expenses incurred for maintaining their property.

What does the GST amendment mean for property owners in India
How the GST amendment will impact property owners who are renting out their properties The recent GST amendment will have a significant impact on property owners who rent out their properties in India. The amendment will change the way property is taxed in India, and this will likely result in an increase in rental prices. Property owners need to be aware of these changes and take steps to ensure that they are compliant with the new rules.

What property owners need to do to comply with the GST amendment
Property owners who rent out their properties in India need to take steps to ensure that they are compliant with the new GST rules. They should register their properties with the GST authorities and obtain a valid GST number. They should also charge GST on all rentals and make sure that they file correct and timely returns.

How the GST amendment will impact tenants who are renting properties in India
The recent GST amendment will have a few impacts on tenants who are renting properties in India. Firstly, the GST rates for under-construction property have been increased from 12% to 18%. This means that if you are renting an under-construction property, your rent is likely to go up by 6%. Secondly, the input tax credit has been removed for builders, which means that they can't claim any tax benefits on the construction of new rental properties. This is likely to result in higher rents for new properties. Lastly, the GST amendment requires all landlords to register for GST, even if their annual turnover is below 20 lakhs. This will result in additional compliance costs for landlords, which may be passed on to tenants in the form of higher rents.

What tenants need to do to comply with the GST amendment
Tenants need to be aware of these changes and factor them into their budget when looking for a rental property. If you are already renting a property, you should check with your landlord to see if your rent is going to increase as a result of the GST amendment. If you are looking for a new rental property, you should ask about the expected rent increases before signing a lease agreement. Lastly, all tenants need to ensure that their landlord has registered for GST before paying any rent.
 
The recent GST amendment will have a significant impact on the renting of residential property in India. Property owners need to be aware of the changes and take steps to ensure they are compliant with the new rules. Tenants also need to be aware of the changes and take steps to ensure they are compliant with the new rules.