📢 𝗚𝗦𝗧 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼. 𝟬𝟵/𝟮𝟬𝟮𝟰 - 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲𝗱 𝗧𝗮𝘅 (𝗥𝗮𝘁𝗲) The Ministry of Finance has announced a significant change through Notification No. 09/2024, which impacts the GST treatment of property rentals. Effective from 10th October 2024, the notification mandates that services related to renting any property other than residential dwellings will now be subject to GST.

𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: 𝗡𝗲𝘄 𝗘𝗻𝘁𝗿𝘆 𝟲𝗔𝗕: This amendment specifies that the renting of non-residential property is now explicitly taxable under GST. 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Unregistered persons receiving rental services from registered persons will now be liable for GST payments. This change extends GST obligations to unregistered entities for these transactions.

𝗗𝗲𝘁𝗮𝗶𝗹𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: 𝗜𝘀𝘀𝘂𝗶𝗻𝗴 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆: Ministry of Finance (Department of Revenue) 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼.: 09/2024 - Integrated Tax (Rate) 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗗𝗮𝘁𝗲: 10th October 2024 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁: Introduced under the Integrated Goods and Services Tax Act, 2017.

The notification aims to ensure greater compliance and uniformity in GST application across the property rental sector, particularly for commercial properties. It also broadens the tax base by extending GST liability to unregistered persons in applicable cases.

This change follows earlier amendments made in Notification No. 10/2017 and is part of ongoing efforts to streamline the GST framework and improve transparency in commercial transactions.

📜 𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱: 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝗡𝗼: 10/2017-Integrated Tax (Rate), dated 28th June 2017 𝗣𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼. 14/2023, issued on 19th October 2023.

With the introduction of Notification No. 09/2024, businesses and individuals involved in renting non-residential properties must ensure compliance with GST regulations from 10th October 2024 onward. 𝗥𝗲𝗴𝗮𝗿𝗱𝘀 𝗥𝗮𝗷𝗮 𝗔𝗯𝗵𝗶𝘀𝗵𝗲𝗸