RCM
This query is : Resolved
03 August 2017
dear sir/madam,
A registered dealer paying Shop rent of Rs.15000 per month to unregistered person, is this applicable for RCM.
CA Altamush Zafar
(Expert)
03 August 2017
Yes RCM is applicable.
CA Altamush Zafar
(Expert)
03 August 2017
This exemption is for a day and not per person. If you are purchasing other goods and services from unregistered person then you will have to ensure that it doesnt exceed Rs 5000 in totality for that day. Otherwise you can claim exemption.
05 August 2017
if registered dealer receiving commercial rent below Rs.10000 per month from single shop and no other rents, in this case he should collect gst on that amount?
20 July 2025
1. Registered dealer paying shop rent of Rs. 15,000 per month to an unregistered person:
Under GST, renting of immovable property for commercial purposes attracts tax under Reverse Charge Mechanism (RCM) if the landlord (supplier) is unregistered.
Since the rent is Rs. 15,000 per month (which is above Rs. 5,000 per day limit), RCM applies on the entire rent.
Therefore, the registered dealer must pay GST under RCM on the rent paid to the unregistered landlord.
2. Registered dealer receiving commercial rent below Rs. 10,000 per month from a single shop and no other rent:
The GST law exempts renting of commercial property if the rent received is below Rs. 10,000 per month.
Hence, if the rent received is less than Rs. 10,000 per month, GST is not applicable on such rent.
So, the registered dealer receiving such rent does not need to charge GST on this amount.
Under GST, renting of immovable property for commercial purposes attracts tax under Reverse Charge Mechanism (RCM) if the landlord (supplier) is unregistered.
Since the rent is Rs. 15,000 per month (which is above Rs. 5,000 per day limit), RCM applies on the entire rent.
Therefore, the registered dealer must pay GST under RCM on the rent paid to the unregistered landlord.
2. Registered dealer receiving commercial rent below Rs. 10,000 per month from a single shop and no other rent:
The GST law exempts renting of commercial property if the rent received is below Rs. 10,000 per month.
Hence, if the rent received is less than Rs. 10,000 per month, GST is not applicable on such rent.
So, the registered dealer receiving such rent does not need to charge GST on this amount.
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