Rentals of Premises by Small Traders to Unregistered Businesses to be Exempt from GST

The Finance Minister of our country, while addressing the nation through the press conference after the GST council meeting, made it clear that the small traders who rent their premises to unregistered businesses will be exempt from GST ( Goods and Service Tax ). Undoubtedly, this is a major relief to the small traders who rent their premises to unregistered businesses and will definitely help them save more.

Become a PF & ESIC expert with our comprehensive course – Enroll Now The 55th meeting of the GST Council was presided over by Union Finance Minister Nirmala Sitharaman today, December 21, in Jaisalmer, Rajasthan. It should be mentioned that the nation was kept waiting for the meeting because it was delayed by almost forty minutes. ADG PIB spoke at the news conference. The exemption will apply specifically to the rental income earned by small traders from leasing premises to unregistered businesses.

This includes small shops, office spaces, and other commercial properties rented to entities not registered under the GST regime. In our country, small traders and unregistered enterprises make up the majority of the unorganized sector. Particularly in rural and semi-urban areas, this exemption wil boost local economies, lower expenses, and promote economic activity. We shall look into key highlights on this matter released by the press information bureau “To exclude taxpayers registered under the composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-CTR dated 08.10.2024 vide which renting of any commercial or immovable property ( other than a residential dwelling ) by unregistered person to registered person was brought under reverse charge mechanism. Further, to regularise the period from the date when the notification No. 09/2024-CTR dated 08.10.2024 became effective, i.e. from 10.10.2024 till the date of issuance of the proposed notification on ‘as is where is ‘basis.”

Become a PF & ESIC expert with our comprehensive course – Enroll Now Through this move of the GST council, small business owners will be able to offer reasonably priced services to unregistered enterprises as they won’t have to charge or pay GST on rent and thus it will help them to rent more easily as the price for rentals will decrease. Other important decisions include that the lifesaving drugs will be fully exempt from GST and that the fresh green and black peppers, when supplied by the agriculturists, will be exempt from GST.

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