Rates are pre-filled for convenience and can be edited. Tax rules change — confirm the current GST rate and TDS treatment with your CA before invoicing.
GST on commercial rent in India
Renting out commercial property — offices, shops, warehouses, land for business use — is a taxable supply of service under GST, classified under SAC 997212 and taxed at 18%.
- Same state: 9% CGST + 9% SGST (or UTGST).
- Different states: 18% IGST. The place of supply for renting immovable property is where the property is located.
If you only know the GST-inclusive amount, remove GST like this:
When a landlord must charge GST
A landlord must register for GST when their aggregate turnover from taxable supplies exceeds ₹20 lakh in a financial year (₹10 lakh in special category states). Once registered, GST is charged on all commercial rent invoices.
How TDS interacts with GST
Business tenants usually deduct TDS on rent under Section 194-I. When GST is shown separately on the invoice, TDS is calculated on the rent excluding GST (CBDT Circular No. 23/2017). The landlord therefore receives the full GST amount plus rent minus TDS. Work out the right TDS rate with our TDS on rent calculator.
Frequently asked questions
What is the GST rate on commercial rent?
Renting of commercial property is taxed at 18% GST under SAC 997212. Within the same state it is charged as 9% CGST + 9% SGST; across states as 18% IGST.
When does a landlord need to charge GST on rent?
A landlord must register and charge GST when their aggregate turnover from taxable supplies, including commercial rent, exceeds ₹20 lakh in a financial year (₹10 lakh in special category states).
Is TDS on rent calculated before or after GST?
TDS is calculated on the rent excluding GST, when GST is shown separately on the invoice (CBDT Circular No. 23/2017).
Is GST payable on residential rent?
Renting a residential dwelling for use as a residence is generally exempt. Since 18 July 2022, when it is rented to a GST-registered person, that tenant pays 18% GST under reverse charge. This calculator is meant for commercial rent.
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