The Central Government today notified that the supply of service of immovable property by the the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 is subject to Goods and Services Tax (GST) under reverse charge basis.
Under the new tax regime, any type of lease or renting out of immovable property for business would attract GST at 18%, as it would be treated as a supply of service.
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