Charity and RCM
This query is : Resolved
10 July 2025
We are registered person, & paying rent to our guest house, as well as paying house rent to various poor people. There is no any agreement.
This said expenses we debited to charity purpose head. House owner payment received receipt is attached to expenses voucher.
Is RCM payment required.
This said expenses we debited to charity purpose head. House owner payment received receipt is attached to expenses voucher.
Is RCM payment required.
10 July 2025
Yes, RCM applicable...
10 July 2025
But, sir there is no any agreement. We only paid to poor, needy people. Debited to P&L A/c as Charity.
10 July 2025
The 48th GST Council meeting clarified that no GST is payable under RCM where a residential dwelling is rented to a registered person if it is rented in their personal capacity and for use as their own residence and not on account of their business.
Had you paid amount directly to poor people, GST would not arise, but you are paying it to landlords; who are getting it as rent, so the liability to pay RCM by registered person arises. Now it is up to you to decide whether you are treating it as charity or rent; query may arise which may drag it in some trouble.
Had you paid amount directly to poor people, GST would not arise, but you are paying it to landlords; who are getting it as rent, so the liability to pay RCM by registered person arises. Now it is up to you to decide whether you are treating it as charity or rent; query may arise which may drag it in some trouble.
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