A newspaper clip is extensively shared on social media, claiming that now one must pay a Goods and Service Tax even while renting a home.
The title on the newspaper clip reads: “घरेलू मकान के किराये पर भी देना होगा GST !” (English translation: “You need to pay GST at house rent, too.”)
The link to the post can be seen here.
FACT CHECK
NewsMobile did the fact check, and found it to be fake.
On searching Google with appropriate keywords, we found a report published by NDTV. According to the report, “a tenant, who is registered under the GST, is required to pay GST at 18% for renting a property, effective from July 18.”
The report has further clarified that the tax will only apply when the tenant is registered under GST and liable to file GST returns. The owner of the property is not liable to pay the GST.
Clarifying the doubt, a PIB Fact Check tweet says that “renting of residential unit is taxable only when it is rented to the business entity. No GST, when it is rented to a private person for personal use. No GST, even if proprietor or partner of firm rents the residence for personal use.”
Hence, we can ascertain that the viral claim is misleading.
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