GST registration for landlords of shops, offices and godowns

How the threshold is counted

Aggregate turnover includes exempt supplies. So a landlord earning Rs. 12 lakh a year from a ground-floor shop and Rs. 9 lakh from flats let to families for residence has crossed Rs. 20 lakh, even though the residential rent itself is exempt when let to unregistered persons for residence. All properties on the same PAN across India are counted together.

Property in another state is supplied from where it is located, so a landlord with offices in two states may need a registration in each state once liable.

• Commercial rent: taxable.
• Residential dwelling let for residence to an unregistered person: exempt, but counted in turnover.
• Maintenance, parking and signage charges billed to tenants: also supplies.

Unregistered landlord, registered tenant

From 10 October 2024, when an unregistered landlord rents commercial property to a registered tenant, the tenant pays GST under reverse charge. Tenants registered under composition were later excluded from this. In practice, a small landlord below the threshold renting a shop to a registered chemist does not charge GST; the tenant handles it in its own return.

Tenants sometimes ask such landlords to register so the tenant avoids reverse charge. That is a business choice; once you register, you charge tax on all taxable rent and file returns every period.

Registration and documents

Keep ready PAN, Aadhaar and photograph, ownership proof for each property such as a property tax receipt or sale deed, an electricity bill, lease agreements with tenants, and a cancelled cheque. Jointly owned properties need care on whose PAN the rent belongs to; take advice before applying. Add bank details within 30 days of registration or before the first GSTR-1.

Common mistakes

Landlords often forget the security deposit adjustments, rent escalation clauses and arrears received after registration, and some miss that a lease of a residential flat to a company for its office is not residential use. Input tax credit on construction of the building on your own account is blocked, though credit on services like repairs and brokerage for a commercial let may be available.

• Leaving residential rent out of the threshold test.
• Charging GST on rent before receiving the GSTIN.
• Not issuing monthly invoices to registered tenants.

Getting help

A professional can check whether registration is due, structure tenant invoices and handle the application and quarterly or monthly returns.

Get it handled for you

Need GST registration done right the first time? Our chartered accountants prepare the documents, file the application and handle any query, so you do not have to visit the GST office. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.