GST on Rent in India (2026): Commercial vs Residential
Commercial rent carries 18% GST; a home rented for personal use is exempt — but let that home to a GST-registered business and 18% applies under reverse charge. Here's the complete 2026 rent-GST guide for landlords and tenants.
Part of: The Complete GST Guide for Small Business in India (2026)
Rent GST depends on what the property is and who rents it. Commercial property is straightforward at 18%; residential rent is exempt for personal use but taxable when a registered business is the tenant. Here's how it works for landlords and tenants in 2026.
Quick answer: commercial rent = 18%. Residential rent for personal use = exempt. Residential let to a GST-registered business = 18% under reverse charge (tenant pays).
Rent GST at a glance
| Scenario | GST | Who pays |
|---|---|---|
| Commercial property rent (shop, office) | 18% | Landlord charges (forward) |
| Residential rent to an individual for personal use | Exempt | — |
| Residential rent to a GST-registered business | 18% | Tenant, under reverse charge (RCM) |
| Renting of rooms below the hotel threshold | see hotel rules | — |
The residential reverse-charge twist
A landlord letting a house to a plain individual for living in charges no GST. But if the tenant is a GST-registered person (a company taking a flat for staff, say), GST applies at 18% under reverse charge — meaning the registered tenant, not the landlord, pays it to the government and can usually claim it as ITC where eligible.
Registration threshold
A landlord must register for GST once total taxable turnover (including commercial rent) crosses the threshold (₹20 lakh for services in most states, ₹10 lakh in special-category states). Pure exempt residential rent does not count toward taxable turnover.
General information only, not tax advice; rules including RCM and thresholds can change. Confirm your specific situation on CBIC notifications or with your CA. Last reviewed: September 2026.
Track rent & GST in KukBook
KukBook records rental income and expenses with the correct GST/RCM treatment, tracks tenant ledgers, and prepares your GST returns automatically.
