BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Whether you’re buying a shop, renting office space, or leasing a warehouse, understanding the GST implications is crucial. Unlike residential properties, commercial properties are fully taxable under GST. This guide explains the gst rate on commercial property, its impact on buying, renting, and leasing, and how it differs from residential spaces.
Yes. Under GST, the sale or lease of commercial properties such as shops, offices, showrooms, warehouses, and commercial complexes is taxable. However, the gst rate on commercial property depends on whether the unit is under construction or ready-to-move.
| Property Type | GST Rate | Condition |
|---|---|---|
| Under-construction commercial property | 12% | With Input Tax Credit (ITC) allowed |
| Ready-to-move commercial property | Exempt | If Completion Certificate (CC) is issued |
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| Type of Lease | GST Rate |
|---|---|
| Office space, shops, warehouses | 18% |
| Long-term lease with upfront premium | 18% |
| Commercial land lease (business use) | 18% |
Businesses registered under GST can claim Input Tax Credit to reduce their tax liability.
If a building has both residential and commercial units, GST is charged only on the commercial portion. Residential units sold after receiving a completion certificate are exempt, while commercial units are fully taxable.
Understanding the gst on commercial property in india helps landlords, investors, and tenants make informed decisions and remain tax-compliant. Whether you’re buying, leasing, or renting, GST must be considered in your cost planning.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.