Revenue Secretary Dr. Hasmukh Adhia recently clarified that any earning over Rs 20 lakh annually from rental income or leasing for commercial purposes would attract tax under the new indirect tax law.
He said that if the house property is rent out for shop or office purpose, no Goods and Services Tax (GST) will be levied up to Rs 20 lakh.
” Which is received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs 20 lakh as rent,” Adhia said at the GST Master Class.
The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes.
