Who pays GST, landlord or tenant? A : GST is ultimately borne by the tenant, although who pays and how depends on the nature of lease and whether or not the owner is registered for tax.

Residential Properties

Personal Residence: if a person rents a home or apartment that the person occupies solely as a residence, there is no GST payable (even though the landlord may be registered).

Business Use: In case, a registered business entity or proprietor has rented any residential dwelling for commercial use or as an accommodation for his employees, the tenant shall pay GST (by way of RCM) directly to government.

Commercial Properties (Offices, Shops, Warehouses)

Standard Mechanism: Applicable 18% GST on commercial properties. The tenant is required to pay this GST every month with their rental payment to the landlord, and then subsequently remitted it (the funds are deposited by the landlord with tax authorities).

When a commercial space owner who is not registered under GST rents the premises to someone who is, it attracts 18% GST. In this case, reverse charge applies and the tenant pays this amount straight to the government.

In most cases of commercial establishments, the GST paid can be offset (as there are registered tenants who can claim an Input Tax Credit(ITC) suggestive obviously when the GST is being applied)

The payment of 18 % GST on rent either by landlord or tenant completely depends upon the nature of house property (commercial vs residential) and GST registration status of both parties.

The rules specify who exactly is liable to pay the tax in each situation:

Commercial Property (Shops, Offices, Warehouses)

Responsibility of commercial property is based under; FCM or RCM

Scenario A: Landlord is GST-Registered → Rent Paid by Landlord (FCM)

The landlord charges 18% GST on the rent bill, recovers from the tenant and pays it to Govt.

Case B: Unregistered Landlord + Registered Tenant $\rightarrow$Tenant Pays (RCM)

Especially after some important tax changes if a GST-registered business rents out commercial space from an unregistered landlord, then the tenant is compelled to calculate and pay the 18% GST directly to the government under RCM. There is no tax collected by the landlord.

Scenario C: Both Unregistered $\rightarrow No GST$

Where neither the landlord nor the tenant is liable to register under GST, rent pays no tax.

Residential Property (Flats, Houses)

Residential real property tax is calculated according to the usage of the property and by profiles of tenants.

Example A: Rented to a Non-Registered Person as Non-Residence $o$ No GST (Exempt)

If an undeclared individual or a salaried worker rents a home simply to live in, it is entirely free. Neither party pays GST.

Scenario B: Rented to a GST Registered Business $\rightarrow$ Tenant is Paying (RCM)

A registered company or firm that leases out a property for residential (like guest house, staff transit facility, home office etc.) use is also liable to pay tax @ 18% as applicable. This is to be paid directly to the government by the tenant business under RCM.

Scenario C: Leased to a Registered Owner for Occasional Use $\rightarrow$ No GST (Out of scope)

A registered sole proprietor who rents a home to live in with their family as such will also not have that deemed rental income subject to tax as long it is not claimed as an expense of the business.

Frequently Asked Questions

How do I check a builder's track record?

Look at delivered projects, delivery delays, the RERA record and buyer reviews. A builder with a clean, on-time record lowers your risk sharply.

What red flags should I watch for when buying?

Unclear title, missing approvals or RERA, pending dues, a builder with delays, and prices far below the market. If something feels rushed, slow down and verify.

What is the difference between capital appreciation and rental yield?

Appreciation is the rise in the property value over time; rental yield is the annual rent as a share of the price. Most Indian homes give modest yield and rely on appreciation.

How much should I keep as a buffer beyond the price?

Set aside for stamp duty, registration, GST where it applies, interiors, and a contingency. A buffer of a meaningful share above the base price is prudent.

Is a home loan pre-approval useful?

Yes, a pre-approved loan tells you your budget, speeds up booking and strengthens your negotiating position with sellers. Get it before you shortlist seriously.

How do I choose between two similar projects?

Compare the builder record, RERA status, carpet area, real amenities, connectivity and total cost, not just the headline price. Visit both before deciding.

What documents are needed to rent a home?

Identity and address proof, and a signed rent agreement. Landlords may also ask for employment or reference details and a security deposit.

Should a rent agreement be registered?

For longer tenancies a registered agreement is safer and clearer for both sides. The common 11-month agreement is convenient but carries less legal weight.

How much security deposit is normal?

It varies by property and owner, often a couple of months rent for homes and more for premium or commercial space. Agree it in writing.

Who pays for maintenance in a rented home?

Usually the tenant pays monthly society maintenance and utilities, while major repairs stay with the owner. Spell this out in the agreement.

What is a lock-in period in a lease?

It is the minimum period neither side can exit without penalty. Check the lock-in and notice period before you sign, especially in commercial leases.

Is it better to rent or buy?

It depends on your budget, how long you will stay and your job stability. Renting gives flexibility, buying builds an asset, weigh both before deciding.

What stamp duty and registration charges apply in Gurgaon and NCR?

Stamp duty and registration vary by state and are usually a few percent of the property value, with a small rebate for women buyers in many states. Confirm the current Gurgaon and NCR rate before you budget.

How much home loan can I get to buy in Gurgaon and NCR?

Most buyers get a loan for 75-90% of the value, tied to income and credit score. Our home loan by salary guide shows the ranges.

What documents do I need to buy property in Gurgaon and NCR?

Identity and address proof, PAN, income papers for a loan, and the property title chain, approvals and latest tax receipts. Keep both sides KYC ready for registration.

How do I check if a project is RERA-registered?

Search the state RERA portal by project or builder name for the registration number and approved plan. Our RERA check guide explains it.