GST Rules for Rent Receipts in India: Complete Guide 2026
Published: 25 January 2026 | Last Updated: 1 February 2026
Understanding GST on Rent in India
Understanding GST rules for rent receipts is crucial for both landlords and tenants in India. The applicability of GST on rent depends on whether the property is residential or commercial, the landlord's GST registration status, and the annual rental income threshold.
This comprehensive guide covers GST on commercial rent, GST exemption on residential rent, TDS requirements, GST registration thresholds, and compliance requirements for generating proper rent receipts.
Residential Rent: GST Exemption
Residential rent is completely exempt from GST under Schedule III of the CGST Act, 2017. This means:
- No GST is charged on residential property rent, regardless of the rental amount
- Landlords do not need GST registration for residential rental income
- Tenants cannot claim GST input credit on residential rent
- Rent receipts for residential properties do not require GST details
💡 Important Note
If a landlord provides additional services (maintenance, security, parking) along with residential rent, those services may be taxable if the landlord is GST registered. However, the rent itself remains exempt.
Commercial Rent: GST Applicability
GST on commercial rent applies when:
- The property is used for commercial purposes (offices, shops, warehouses, etc.)
- The landlord is registered under GST
- The annual rental income exceeds ₹20 lakhs (₹10 lakhs in special category states)
GST rate on commercial rent: 18%
If the landlord is not GST registered, no GST is applicable on commercial rent, even if the property is used for commercial purposes.
GST Registration for Landlords
Landlords must register for GST if:
- Annual rental income from commercial properties exceeds ₹20 lakhs (₹10 lakhs in special category states)
- They provide taxable services along with rent (maintenance, security, etc.)
- They have other business activities that require GST registration
⚠️ Important
Residential rental income does not count towards the GST registration threshold. Only commercial rental income is considered.
TDS on Rent vs GST
TDS (Tax Deducted at Source) on rent is separate from GST:
- TDS applies if monthly rent exceeds ₹40,000 (10% TDS for individuals/HUF, 2% for companies)
- TDS applies to both residential and commercial rent
- TDS is deducted by the tenant and deposited to the government
- GST is charged by the landlord (if registered) on commercial rent
- Both TDS and GST can apply simultaneously for commercial rent
Example: If monthly commercial rent is ₹50,000 and landlord is GST registered:
- Rent: ₹50,000
- GST (18%): ₹9,000
- Total payable: ₹59,000
- TDS (10% on ₹50,000): ₹5,000 (deducted by tenant)
- Net payment to landlord: ₹54,000
Rent Receipt Requirements for GST
For commercial rent with GST, the rent receipt must include:
- Landlord's GSTIN (GST Identification Number)
- GST amount charged (18% on commercial rent)
- HSN/SAC code for rental services
- Invoice number (if GST registered)
- All standard rent receipt details (tenant, landlord, amount, period)
For residential rent, no GST details are required as it is exempt.
✅ Pro Tip
Use our Rent Receipt Generator to create compliant rent receipts. For commercial rent with GST, ensure your landlord provides GSTIN and GST invoice.
GST Input Credit for Tenants
GST registered tenants can claim GST input credit on commercial rent if:
- The property is used for business purposes
- The landlord is GST registered and issues a GST invoice
- The tenant is GST registered
- The rent is for commercial property
Residential rent is exempt from GST, so no input credit is available.
Frequently Asked Questions
Is GST applicable on residential rent in India?
No, GST is not applicable on residential rent. Residential rent is exempt from GST under Schedule III of the CGST Act, 2017. However, if the landlord provides additional services like maintenance, security, or parking, those services may be taxable if the landlord is GST registered.
When is GST applicable on commercial rent?
GST is applicable on commercial property rent if the landlord is registered under GST and the annual rental income exceeds ₹20 lakhs. The GST rate is 18% on commercial rent. If the landlord is not GST registered, no GST is applicable.
Do tenants need to pay GST on rent?
If the landlord is GST registered and renting commercial property, the tenant must pay GST along with rent. The landlord will issue a GST invoice. For residential rent, no GST is applicable, so tenants do not pay GST.
Can tenants claim GST input credit on rent?
Yes, if the tenant is GST registered and uses the commercial property for business purposes, they can claim GST input credit on the rent paid. Residential rent is exempt, so no input credit is available.
What is TDS on rent and how does it differ from GST?
TDS (Tax Deducted at Source) on rent is a tax deduction by the tenant, separate from GST. If monthly rent exceeds ₹40,000, tenants must deduct 10% TDS. GST is a tax on the rental service itself, while TDS is a tax deduction mechanism. Both can apply simultaneously for commercial rent.
When must a landlord register for GST?
A landlord must register for GST if their annual rental income from commercial properties exceeds ₹20 lakhs (₹10 lakhs in special category states). Residential rent is exempt, so it does not count towards the threshold.
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