If a person will rent his house to a GST registered person or company even if he is not registered in GST, then the tenant will have to pay 18% GST. GST on casinos, online gaming and horse racing will be discussed in the meeting of the GST Council to be held at the end of this month or in early September.
GST is being imposed in the country on almost every item from breakfast bread to night milk. Due to this GST, there has been a strong attack of inflation on the people. So the government has become rich. The opposition duly calls it Gabbar Singh Tax. Now the rented house has also come under the purview of this tax. In fact, on July 18, the rules related to house rent are also included in the changes made by the GST Council.
Who will have to pay GST on the house?
Under these rules, now in some special circumstances, GST will have to be paid on the rent of the house. According to the rules, if a business or person registered under GST takes a house on rent, then he will have to pay GST. Till now this rule of GST on rent was applicable only on commercial properties.
In this rule of GST, the tenant will be allowed to claim input tax credit on the tax paid. However, GST will not apply even if the house is rented for personal use. Also, even if the business, company or person renting the house is not registered under GST, then this tax will not be applicable.
What is GST rules on house rent?
If a person will rent his house to a GST registered person or company even if he is not registered in GST, then the tenant will have to pay 18% GST. If the tenant is not registered under GST, then no tax will have to be paid. If the company or any person takes any residential property for employee residence, guest house use or office use, Then the tenant will have to pay 18% GST.
This tax will have to be paid even if the landlord is not registered in GST. However, if both the landlord and the tenant are not registered under GST, Then this rule of GST on rent will not be applicable. Along with this, as before, those renting a house or flat for personal use will not have to pay GST.
GST of more than 1.5 lakhs on marriage of 10 lakhs
Wedding season will start in India after Diwali. For this, people have already started booking marriage halls, tents, caterers, wagons etc. For this, the advance has to be paid now and the rest has to be paid after the marriage is near or done. But whatever amount will be paid for all these arrangements, the burden of GST will be on it separately.
This burden is so big that if 10 lakh rupees are being spent for different services in a wedding. Then more than 1.5 lakh GST will have to be paid for these services. The highest 18% GST is levied on the marriage garden i.e. 36 thousand GST is levied on the marriage home of 2 lakhs.
- 18 thousand GST has to be paid on tents of 1 lakh.
- 27 thousand GST is levied on catering of 1.5 lakhs.
GST on clothing and footwear
Apart from this, 18% GST is also levied on decoration, band baja, photo-video, wedding card, horse-drawn, beauty parlor and lighting. If you look at the rate of GST on the rest of the items used for wedding shopping, then 5 to 12 percent GST is levied on clothes and footwear. Whereas gold jewelery attracts 3 per cent GST. This means that on buying jewelery worth 3 lakh rupees, 9 thousand rupees will have to be paid as GST. Similarly, 5 percent GST is also levied on bus-taxi service.
GST on online gaming and horse racing
GST on casinos, online gaming and horse racing will be discussed in the meeting of the GST Council to be held at the end of this month or in early September. The Group of Finance Ministers of the states constituted for the session can submit its report to Finance Minister Nirmala Sitharaman in 1-2 days. The report of the Group of Ministers will be discussed in the meeting. The Group of Ministers constituted under the chairmanship of Meghalaya Chief Minister Conrad Sangma, in a previous report, had recommended to the GST Council 28% GST on total payments for horse racing, online gaming and casinos.