Harry has rented his building consisting of ground floor, first and second floors. The building is located in a residential complex. The ground floor is rented out for the purpose of residence to B. The first and second

Even though the building is part of residential complex, it has partly been used for commercial purpose. As the rents for residential purpose and commercial purpose have not been segregated and no break-up is available, the supply is a mixed supply as per the GST law. In the case of mixed supply, the supply that attracts the highest rate of tax that is commercial renting would be applicable on the entire amount of ₹1 lakh. Therefore, Harry would be liable to pay ₹18,000 towards GST (₹1,00,000*18%). If rent for the residential purpose is separately charged and the rent for commercial purpose is also charged separately, even if such charges are collected from a single person, the rent for immovable property rented out for residential purpose is exempt and would not attract the levy of GST. It will suffice if GST is paid on the rent for the portion used for commercial purpose which comes to ₹13,500 (₹75,000*18%).