Is Gst Applicable For Homestay at Homestay

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Is Gst Applicable For Homestay. Declared room tariff upto rs. Igst is applicable on following types of transaction:

Kannur Homestay with Private Beach
Kannur Homestay with Private Beach from www.dharmaendeavours.com

You aren’t subject to gst as the rental charge is input taxed. Effect of these seemingly conflicting facts (notification and circular) is that , otas/eco collect gst from homestays listed on their portal based on room tariff leaving homestays no means. Igst is applicable on following types of transaction:

Kannur Homestay with Private Beach

However, now it has been extended to all the homestays. Gst on rent is applicable to properties rented for commercial purposes. Since july, a tax rate of 18% has been applicable on bookings, placing the small homestays — homes where a maximum of five rooms can be let out to guests — on the same. Remember if you convert the property as commercial then minimum of 20lac commercial property rental income doesn't come under gst and residential property rental income doesn't come under gst.