Traders’ body seeks GST relief on rental payments
A traders’ body has urged the government to provide relief on GST imposed on rental payments for commercial properties.
The association highlighted that traders, especially small ones operating under the composition scheme, are required to pay 18% GST on rent paid to property owners.
While regular taxpayers can claim input tax credit (ITC), composition dealers are not eligible for ITC, resulting in an additional financial burden on them.
The body suggested that GST on such rental payments should be reduced to 5% for small traders operating from shops.
They also stated that rental costs in cities are already high, and the GST further increases operational expenses for small businesses.
In addition, the traders’ body demanded extension of benefits under the MSME Act, including easier access to loans, interest subsidies, and quicker recovery mechanisms.
The issue was raised during a meeting of the National Traders Welfare Board, where members from various states participated and discussed challenges faced by the trading community.
