Acting as an Agent

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Rajkumar Gutti (Querist)
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08 November 2025 We are gst registered company. Paying house rent to employee. Rent is debited to rent account. House agreement is between landlord & employee.
Paid house rent company consider as perqisite.
Is company payable gst rcm as per sec. 2 (93 ) C cgst ( employee acting as an agent on behalf of company )

Please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 November 2025 Yes, your company is liable to pay GST under the Reverse Charge Mechanism (RCM) on rent paid for a residential property provided to an employee, even if the rental agreement is between the landlord and the employee, provided the company is effectively acting as the recipient and reimbursing/covering the expense.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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08 November 2025 धन्यवाद सर, Thanks sir🌹🌹q

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 November 2025 You are welcome.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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14 November 2025 Sir in above who is an agent and who is pricipal

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 November 2025 Employee is working as agent to principal company.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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15 November 2025 Sir, one more question is there remain-
Is here apply employer - employee relationship, hence
Exempt this rent reimbursement to employee.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 November 2025 It is not exempt, but counted as perquisites.

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