Does GST apply to rent?
Reviewed June 2026
It depends on three things: what is rented, to whom, and for what use. Renting commercial premises — shops, offices, godowns — is a taxable service, so a registered landlord charges GST on it, and a business tenant can generally claim that credit.
Residential property has its own path. Renting a dwelling to an individual for personal residence stays exempt. But when a residential property is rented to a registered business, the tax can shift to the tenant under reverse charge — a detail that surprises many tenants at audit time.
If you're a landlord nearing the registration threshold, or a business taking premises on rent, it's worth structuring the lease with the GST treatment known in advance — clean invoicing, correct credits, no surprises. We review lease arrangements as a routine part of our GST work.
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This explainer simplifies the law on purpose and is general guidance, not advice on your specific facts. Rules, rates and thresholds evolve. For your situation, talk to us — that first conversation is exactly what we’re here for.