GST on Rent Commercial Unit

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This query is : Resolved

Quick Summary

If your landlord isn't issuing a GST invoice for your commercial rent, you might be able to pay the GST yourself under the Reverse Charge Mechanism (RCM). This is because registered suppliers are legally obligated to issue tax invoices, and failure to do so can result in penalties. You can consider the landlord as unregistered for GST purposes in this scenario, pay the GST via RCM, and claim the Input Tax Credit (ITC).

Husseini

Husseini (Querist)

12 March 2025 We have taken commercial gala on rent, The both parties are registered under GST. We are making Rs.14160/-Rent payment per month including gst18% to landlord but he is not issuing commercial rent invoice to us. can we make GST payment under RCM on rent.
Does any GST liability in are part ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 March 2025 If the supplier is registered under GST, why he is not issuing tax invoice with GST?

kathir

kathir (Expert)

12 March 2025 A registered person must be issue tax invoice. If fails to issue a tax invoice, they may be liable to a penalty of ₹10,000 or the tax due, whichever is higher As per Section 122 of the CGST Act.

The buyer or service receiver can raise the complaint to GST authority or don't deal any business activity against the seller/service provider who are not willing to issue tax invoice.

Some business dealing with kind of issues hence my opinion on this, The penalty and interest lying with service provider side only hence you have treat the service provider is a unregistered person and you can pay GST under RCM ( Rent service comes under RCM Purview ) and avail ITC.

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