GST on renting out residential units: Clarification from policymakers must to avoid frivolous litigations

Since GST was introduced, renting residential dwellings for residing was exempt. In a significant development, the government withdrew the GST exemption on such rentals where the lessee is registered under GST laws. Moreover, effective 18 July 2022, tax on such rentals is required to be paid by the lessee/tenant who receives the service on a ‘reverse charge’ basis. This has sparked an extensi…