GST on rent in India — commercial vs residential explained (2026)

The 4 possible tax situations

1. Landlord + tenant both unregistered → No GST.
2. Landlord unregistered, commercial tenant registered → Reverse charge — tenant pays 18% GST on rent.
3. Landlord registered, commercial tenant → 18% GST charged by landlord.
4. Residential rental to individual → Fully exempt.

Residential rent — the big exception

Under Notification 05/2022, if a registered person rents a residential property for their business or as a company guest-house, 18% GST applies under reverse charge. Individual residential rentals remain exempt.

Commercial rent — always 18%

Shop, office, godown, warehouse, coworking desk — all attract 18% GST if the landlord's turnover is above ₹20 lakh (₹10 lakh in special-category states).

Input tax credit — the reason it matters

Commercial tenants who pay GST on rent can claim it as input credit against their output GST. Zero net cost. So don't argue over the GST line — argue over the base rent.

Landlord thresholds & compliance

• Turnover under ₹20 lakh → No GST registration needed.
• Above → Register within 30 days, file GSTR-1 and GSTR-3B monthly.
• TDS under section 194-I still applies to tenants — 10% for land & building above ₹2.4 lakh/year.

Bookkeeping tips

• Issue GST-compliant rent invoices monthly.
• Separate residential and commercial income in your ledger.
• Reconcile with 26AS to avoid TDS mismatches.

GoRentiva's upcoming invoicing module will auto-generate GST-compliant rent invoices — one click, PDF, GSTIN-tagged.