New Delhi: The Congress on Friday claimed that an 18 per cent GST on rent even for residential property has been applied and called it "asli kaala jaadu", even as the government clarified that GST does not apply on residential units if they are rented out to private persons for personal use.
The 'kaala jaadu' dig was in apparent reference to Prime Minister Narendra Modi's criticism of the Congress for wearing black dresses on August 5 in protest against price rise. Modi had said those who believe in "kaala jaadu" will never be able to win the trust of the people again.
In a tweet, Delhi Congress vice president Mudit Agarwal said 18 per cent GST on rent even for residential property is an example of 'acche din' by the Modi government.
Tagging Agarwal's tweet, Congress general secretary Jairam Ramesh said after "senseless GST on food items of daily consumption now this. This is asli kaala jaadu".
The government dismissed media reports claiming that it has imposed a 18 per cent Goods and Services Tax (GST) on house rent paid by tenants.
In a fact check on Twitter, the government said GST would be levied only when the residential unit is rented out to a businesses entity.
"No GST when it is rented to private person for personal use. No GST even if proprietor or partner of firm rents residence for personal use," the tweet said.
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