Rcm on rent
This query is : Resolved
mohit malhotra
(Querist)
02 November 2018
sir
kya rent pe rcm ha
kya rent pe rcm ha
CA R SEETHARAMAN
(Expert)
02 November 2018
No RCM on rent payment.
mohit malhotra
(Querist)
10 November 2018
sir
kya stock to fixed asstes bana sakte ha or itc bhi le sakte ha
kya stock to fixed asstes bana sakte ha or itc bhi le sakte ha
20 July 2025
RCM on Rent — Here's a quick answer for you:
Is Reverse Charge Mechanism (RCM) applicable on Rent?
Yes, RCM applies on rent in certain cases under GST.
When is RCM applicable on Rent?
If you (the recipient) are registered under GST and you are paying rent to an unregistered landlord (person not registered under GST), then you need to pay GST on reverse charge basis.
This applies to rent for commercial property (shops, office space, etc.), not residential rent.
The applicable rate under RCM for renting of immovable property (commercial) is 18% GST (usually CGST 9% + SGST 9%).
Key points:
If landlord is registered under GST, they will charge GST on the rent, and no RCM for tenant.
If landlord is unregistered, tenant pays GST under RCM.
Residential rent is generally exempt from GST.
Example:
You are a registered business, paying monthly rent of Rs. 20,000 to an unregistered landlord → You pay GST (18%) on Rs. 20,000 under RCM and deposit the same.
Is Reverse Charge Mechanism (RCM) applicable on Rent?
Yes, RCM applies on rent in certain cases under GST.
When is RCM applicable on Rent?
If you (the recipient) are registered under GST and you are paying rent to an unregistered landlord (person not registered under GST), then you need to pay GST on reverse charge basis.
This applies to rent for commercial property (shops, office space, etc.), not residential rent.
The applicable rate under RCM for renting of immovable property (commercial) is 18% GST (usually CGST 9% + SGST 9%).
Key points:
If landlord is registered under GST, they will charge GST on the rent, and no RCM for tenant.
If landlord is unregistered, tenant pays GST under RCM.
Residential rent is generally exempt from GST.
Example:
You are a registered business, paying monthly rent of Rs. 20,000 to an unregistered landlord → You pay GST (18%) on Rs. 20,000 under RCM and deposit the same.
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