Gst on rent payment to urd individual

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This query is : Resolved

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Currently, there is no requirement to pay GST under the Reverse Charge Mechanism (RCM) on rent paid to unregistered individuals (URD). While RCM was initially considered for certain URD expenses at the start of GST implementation, the government has not yet notified specific services or persons for whom it would be applicable in this context. Therefore, no RCM needs to be paid on rent to URD at present.

vin

vin (Querist)
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21 February 2020 Dear Expert,
We are paying rent to individual who is unregistered in GST. Should we pay rcm on rent u/s 9 (4) service from urd person.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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22 February 2020 Government has not notified specified class of services or person for whom RCM under 9(4) will be applicable. Hence at present no RCM is be paid on rent paid to URD.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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26 February 2020 Yes agreed with above expert reply, no need to pay rcm on rent paid to urd . it was only in the starting stage of GST where u need to pay RCM on URD expenses

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