GST on renting industry

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A business owner is seeking clarification on GST applicability for rent paid on a property recently purchased by their proprietor's wife. The rent is proposed at £100,000 annually, with TDS deducted at 10%. Experts have indicated that GST may not be applicable if the annual rent is below £20 lakhs. However, if the property is residential, Reverse Charge Mechanism (RCM) under section 9(3) might apply, as per notification no. 5/2022 dated 13th July 2022.

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(Querist)
25 March 2024 Respected Experts,
Ours is sole proprietorship concern on a rented property (land and buliding). Our proprietor has now bought that rented property in his Wife name. And we are planning to pay rent of Rs.1.00 lac in his wifes name and dedcut TDS at 10%. Wether GST will be applicable on rent in this case?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
26 March 2024 GST not applicable in this case as annual rent payment is less than 20 lacs.
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CA Kushwanth AVSR

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CA Kushwanth AVSR (Expert)
26 March 2024 If the property is a residential property, then RCM u/s 9(3) will be applicable as per the notification no. 5/2022 dt. 13th July 2022.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
26 March 2024 Yes, RCM applicable in such a case.
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