Renting a home, shop, or office is common across India—but many tenants don’t fully understand their rights. Without that knowledge, it’s easy to get caught in unfair agreements or face unexpected financial and legal hurdles.

This article breaks down the essential rights every tenant should know, including recent regulations introduced by the Finance Ministry, GST changes, and statutory provisions you can rely on.

Tenant rights in India are derived from a combination of state laws, central laws, and recent regulations. These include the Model Tenancy Act, 2021 (a central framework that states may adopt)[1], older State Rent Control Acts, the Indian Registration Act, 1908[2], Stamp Acts, and the GST Act, 2017, along with Finance Ministry notifications [3]. Together, they define the rights and obligations of tenants and landlords.

One of the most important rights is the right to a written agreement. Tenants should always insist on a formal tenancy agreement that clearly mentions the rent, payment schedule, security deposit, repair responsibilities, notice period, and renewal terms. Under the Indian Registration Act, 1908 (Section 17), any lease over 12 months must be registered[2].

Security deposits are also regulated. Under the Model Tenancy Act, deposits are capped at two months’ rent for residential premises and six months’ rent for non-residential premises[1].

When it comes to maintenance and repairs, landlords are responsible for structural repairs such as the roof, walls, water supply, and electricity. Tenants may be responsible for day-to-day upkeep unless the agreement states otherwise. The Model Tenancy Act provides clear guidance on this division of responsibilities[1].

Eviction protection is another crucial right. A landlord cannot evict a tenant without valid grounds such as non-payment of rent or misuse of the property. Even then, due process and proper notice must be followed. Arbitrary eviction is unlawful under both state laws and the Model Tenancy Act[1].

Tenants are also protected against harassment. Landlords cannot cut off electricity, water, or essential services to pressure tenants into vacating the property. Legal remedies are available through Rent Authorities or courts if such actions occur[1].

The Finance Ministry has introduced changes that directly affect tenants, particularly businesses. From October 10, 2024, if a GST-registered tenant rents non-residential property from an unregistered landlord, the tenant must pay 18% GST under the Reverse Charge Mechanism [4].

In January 2025, relief was introduced for small businesses: tenants registered under the composition scheme were excluded from this reverse charge requirement [5].

Apartment associations also received clarity. They are only required to register under GST if their annual turnover exceeds ₹20 lakh (₹10 lakh in special category states) and if monthly maintenance charges per member exceed ₹7,500. Below these thresholds, GST registration is not required[6].

Tenants should always register and stamp their lease agreements, keep receipts for all rent and deposit payments, clarify GST responsibilities in the rental agreement, and confirm their landlord’s GST status. They should also understand notice period rules and document any maintenance issues.

For individuals, tenant rights safeguard their homes. For businesses, they ensure compliance with GST and tenancy laws, avoiding penalties and unexpected expenses. With recent Finance Ministry notifications, even the smallest shop or startup renting an office must stay informed about tax responsibilities.

Tenant rights in India are evolving. With new laws, such as the Model Tenancy Act and GST updates, tenants need to stay informed and proactive. A fair, written agreement backed by statutory provisions remains the strongest protection. When in doubt, consulting a legal professional ensures tenants don’t lose out due to a lack of awareness.

References

[1] Model Tenancy Act, 2021 – Ministry of Housing and Urban Affairs, Government of India.

[2] Indian Registration Act, 1908 – Section 17, Compulsory Registration of Leases.

[3] GST Act, 2017 – Central Goods and Services Tax Act, Government of India.

[4] Notification No. 09/2024 – Central Tax (Rate), Ministry of Finance, Government of India.

[5] Notification No. 07/2025 – Central Tax (Rate), Ministry of Finance, Government of India.

[6] Finance Minister Clarification on GST for Apartment Associations (2025), Press Release.