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GST on Renting Commercial Property in India — Rates, RCM & Registration
Commercial rent is a taxable supply of service under GST — but who charges it depends on whether the landlord is registered. SetupFiling.in's CA-assisted team registers landlords correctly and gets rent invoicing compliant from day one.
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Quick Answer: Renting out commercial property in India is a taxable supply of service under GST, generally at 18%. A registered landlord charges this on the rent invoice (forward charge). If the landlord is unregistered and the tenant is a GST-registered business, the tenant must pay the GST directly under reverse charge. SetupFiling.in registers landlords at ₹999 onwards, with GSTIN delivered in 24–72 hours.
Is GST Applicable on Commercial Rent?
Yes — renting out any property for commercial use (office space, retail shops, warehouses, co-working desks) counts as a "supply of service" under GST, and is taxable at the standard rate unless a specific exemption applies. This is different from renting a property purely for residential use, which is generally exempt when let out to an individual for residence. Where things get genuinely confusing is who is responsible for paying the GST — the landlord in most cases, but sometimes the tenant, depending on whether the landlord is GST-registered. Getting this wrong means either under-collecting tax you're liable for, or a tenant failing to self-pay tax they were required to deposit under reverse charge. GST Registration services across India from SetupFiling.in cover the landlord side of this — registering your rental income correctly once it crosses the threshold.
SetupFiling.in is founded by practising Chartered Accountants, Company Secretaries, and Trademark Attorneys with 15+ years of combined experience, and we have already helped 12,000+ entrepreneurs and 50,000+ customers across India register and stay compliant.
Who Pays GST on Commercial Rent — Landlord or Tenant?
The GST Council introduced a reverse charge rule specifically for renting of commercial property, which shifts the responsibility to the tenant in one particular scenario:
| Landlord Status | Tenant Status | Who Pays GST |
|---|---|---|
| GST-registered | Registered or unregistered | Landlord charges 18% on the rent invoice (forward charge) |
| Not GST-registered | GST-registered business | Tenant self-invoices and pays 18% directly to the government under reverse charge, and can claim ITC if otherwise eligible |
| Not GST-registered | Not GST-registered | No GST applies to the transaction |
Reverse charge on renting of commercial property by an unregistered landlord to a registered tenant took effect from October 2024. Confirm the current notification and applicable rate with our team, since GST Council rules are periodically revised.
Choose Your GST Registration Package
Transparent, one-time pricing — no hidden charges. Pick the package that fits your rental business and place your order in under 2 minutes.
Silver Package
Just the GST registration — fast and affordable
₹999/-
- GST Registration Certificate
- GST Portal User ID & Password
- Delivery in 48–72 hours
- ARN tracking included
Gold Package
GST Registration + 6 months of returns
₹3999
₹1999/-
- GST Registration Certificate
- GST Portal User ID & Password
- 6 Months GST return filing
- Delivery in 24 Hours
RECOMMENDED
Premium Package
GST Registration + 12 Month GST Return
₹7398
₹3,699
- GST Registration Certificate
- GST Portal User ID & Password
- 12 Months GST Return Filing
- Delivery in 24 Hours
Who Needs GST Registration — Landlords & Property Owners
- Your total rental income from commercial property exceeds ₹20 lakh a year
- You lease out office space, retail shops, warehouses, or co-working desks
- You already run a registered business and also earn rental income that pushes combined turnover over the threshold
- You supply commercial property on rent to tenants in other states
- You're a property management or facilities company collecting rent on behalf of owners
- You want to raise GST-compliant rent invoices so corporate tenants can claim their own Input Tax Credit
- You want to claim input tax credit on repair, maintenance, and improvement costs for the rented property
- You voluntarily want to register even below the threshold to formalise rental income
Documents Required for GST Registration for Landlords
- PAN Card of the property owner / entity
- Aadhaar Card of the owner / partners / directors
- Passport-size photograph
- Property ownership documents or title deed
- Bank account statement or cancelled cheque
- Lease or rent agreement copies with existing tenants
- Digital signature (for companies & LLPs)
- Certificate of Incorporation, if the property is held by a company or LLP
How to Get GST Registration for Renting Commercial Property — Step by Step
1
Choose your package and place your order
Select Silver, Gold, or Premium above and complete payment securely through secure online payment options.
2
Share your property and rental details
Send your PAN, Aadhaar, property ownership documents, existing lease agreements, and bank details to our compliance team.
3
Application filed with correct SAC code
Our CA/CS team prepares and files your GST REG-01 application under the correct SAC code for renting of immovable property.
4
ARN generated and tracked
You receive an Application Reference Number (ARN) instantly, and we track its status until approval.
5
GSTIN and certificate delivered
Once approved, your GST Registration Certificate, GSTIN, and GST portal login credentials are emailed to you — ready to raise compliant rent invoices.
Benefits of GST Registration for Landlords
- Enable your tenant's ITC: Corporate tenants can only claim input tax credit on rent if you issue a proper GST invoice.
- Claim your own ITC: Offset GST paid on repairs, maintenance, brokerage, and property improvement against your output tax on rent.
- Avoid reverse-charge confusion: A registered landlord charges GST directly, removing the burden of self-invoicing from the tenant.
- Formalise mixed rental portfolios: One registration covers multiple commercial units, simplifying invoicing across several tenants.
- Build tenant confidence: Institutional and corporate tenants often prefer or require GST-registered landlords before signing a lease.
- Avoid penalties: Registering once your rental income crosses the threshold avoids interest and late-fee exposure under the CGST Act.
Why Choose SetupFiling.in for GST Registration on Rental Income?
Rental-income GST Filings have their own quirks that a generic business registration often misses — combining rental turnover with income from an existing business, correctly applying the SAC code for renting of immovable property, and structuring registration when multiple co-owners hold the same property. Our team of Chartered Accountants and Company Secretaries works through these details before filing, not after a notice comes back. And it doesn't stop at registration: monthly and quarterly GST return filing help, GSTR-3B filing support, updating your GST registration details, and GST registration cancellation process are all handled by the same team.
- 15+ years of combined CA, CS & legal expertise
- 12,000+ businesses and 50,000+ customers served pan-India
- 100% online — no office visits required
- Correct SAC classification for rental income
- Dedicated WhatsApp support for real-time updates
- Fast turnaround — 24 to 72 hour delivery
Related Compliance Services
Landlords and property owners often need more than one registration. Explore related services:
Frequently Asked Questions — GST on Renting Commercial Property
Is GST applicable on renting commercial property in India?
Yes. Renting out commercial property — office space, shops, warehouses — is treated as a taxable supply of service under GST, generally at 18%, once the landlord's turnover crosses the registration threshold.
What is the GST rate on commercial property rent?
The standard GST rate applicable to renting of commercial property is 18%.
Does reverse charge apply to renting of commercial property?
Yes, in one specific scenario: if the landlord is not GST-registered and the tenant is a GST-registered business, the tenant is required to self-invoice and pay the GST directly to the government under reverse charge, effective from October 2024.
Is GST applicable on residential property rent?
Renting a residential property to an individual for use as a residence is generally exempt from GST. Renting the same property for commercial or business use is taxable, so the purpose of use — not the property type — determines applicability.
What is the GST registration threshold for rental income?
Since renting is treated as a supply of service, the ₹20 lakh threshold applies (₹10 lakh in special category states), not the higher ₹40 lakh threshold used for goods.
How much does GST registration cost for landlords?
GST registration with SetupFiling.in starts at ₹999 for the Silver package. The Gold package (registration + 6 months of returns) costs ₹1,999, and the Premium package (registration + 12 months of returns) costs ₹3,699.
Can a landlord claim input tax credit on maintenance and repair expenses?
Yes, a GST-registered landlord can generally claim input tax credit on GST paid for repairs, maintenance, brokerage, and improvement of the rented commercial property, subject to standard ITC conditions.
What documents are required for GST registration as a landlord?
You need PAN, Aadhaar, a passport-size photo, property ownership documents, existing lease agreements, and bank account details. Companies and LLPs additionally need a Certificate of Incorporation.
What if my rental income is below the ₹20 lakh threshold?
You're not required to register, though voluntary registration is allowed if you want to issue GST-compliant invoices or claim input tax credit on property-related expenses.
How do I place an order for GST registration for my rental property?
Select a package above and click "Place Your Order" to pay securely via Razorpay, or message us on WhatsApp at +91 98182 09246 and our team will guide you through the process.
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