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When do you have to register for GST as a professional landlord?

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While renting out residential properties remains tax-exempt, commercial leasing comes with specific GST rules that every professional landlord must understand and follow. Failing to do so could have severe financial and legal repercussions.
The article from LiveMint discusses the Goods and Services Tax (GST) implications on commercial property rentals in India. It explains that landlords leasing out commercial properties are required to register for GST if their rental income exceeds Rs 20 lakh annually. The GST rate on commercial rent is 18%, and this tax is applicable under the reverse charge mechanism where the tenant, if registered under GST, is responsible for paying the tax directly to the government rather than the landlord. The article also covers scenarios where GST registration might not be mandatory, such as when the property is rented to an unregistered dealer or for residential purposes. Additionally, it touches on the complexities involved in GST compliance for landlords, including the need for proper documentation and understanding of exemptions and abatements. The piece also highlights the importance of understanding these rules to avoid penalties and ensure compliance with tax laws.

Read the Full Mint Article at:
[ https://www.livemint.com/money/personal-finance/gst-on-commercial-rent-india-rental-income-gst-rules-gst-registration-for-landlords-reverse-charge-mechanism-gst-11741249961657.html ]