GST @ 18% on commercial rent: Reasons why builders are likely to shift to residential construction

The government has set the record straight through a neat binary equation---no goods and services tax (GST) on rent from residential properties irrespective of its size. However, GST at the rate of 18 percent would have to be paid on commercial rent in excess of Rs 20 lakh per financial year, period. While this is the logical culmination of any comprehensive value added tax system that doesn’t dis…