The 56th GST Council meeting held on September 3–4, 2025 brought important updates to India’s tax structure. Many landlords and property managers are now asking:
Has anything changed for the property renting business under GST?
Let’s break it down clearly — especially for RentOk users who manage PGs, hostels, and rental properties.
What’s New from the GST Council?
The Council simplified the overall GST framework by removing the old 12% and 28% slabs.
Now, the GST system works with three main tiers:
- 5%
- 18%
- 40% (for a select list of demerit goods like tobacco and luxury items)
But how does this affect the property renting business?
Residential Property Renting Remains Unchanged
✅ If you rent out residential property for actual residential use (tenants living in the property), it remains GST-free.
No GST applies to regular home rentals — which is good news for both landlords and tenants.
Commercial Property Renting
💼 Commercial rentals (like shops, offices, godowns, and co-working spaces) continue to be taxable at 18% GST.
This ensures consistency and avoids confusion for property managers.
Residential Property Used for Business (RCM Applies)
If a residential property is rented for business purposes to a GST-registered entity, GST at 18% continues to apply under the Reverse Charge Mechanism (RCM).
There’s no change here either — the rules remain exactly the same.
Implementation Date of New Rates
The new slab system officially comes into effect from September 22, 2025.
For property rentals, however, this is more of a clarification than a change. The GST impact on your rental business remains steady and predictable.
Quick Summary: GST on Property Renting (September 2025)
| Type of Rental | GST Applicable | GST Rate |
|---|---|---|
| Residential property for living | ❌ No | 0% |
| Commercial property rental | ✅ Yes | 18% |
| Residential property rented for business use | ✅ Yes (RCM) | 18% |
What Should RentOk Users Do?
- Residential rentals: Continue business as usual — no GST applies.
- Commercial & business-use rentals: Charge/apply GST at 18%, just like before.
- Other businesses: If you’re involved in sectors outside property, be mindful of the new GST slabs.
Final Word
There is no new GST burden for landlords and property managers in India after the September 2025 GST Council meeting. Residential rentals stay GST-exempt, and commercial rentals remain at 18%.
At RentOk, we help you stay updated on every change that impacts your property business — so you can focus on growing, not worrying about compliance.
For more updates on property management, GST, and real estate business trends, keep following the RentOk Blog!