RCM on rent on commercial property

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This query is : Resolved

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This discussion clarifies whether Reverse Charge Mechanism (RCM) applies to GST-registered businesses paying rent for commercial property, even if they supply exempt goods like agricultural products. RCM is applicable if the landlord is an unregistered person providing the property to a registered business, as per Notification No. 09/2024-Integrated Tax (Rate). If the landlord charges GST under the forward charge, RCM does not apply.

Kadiwal and Associate

Kadiwal and Associate (Querist)

12 April 2025 client is registered in GST as regular taxpayer, but he is engaged in exapted goods supplier such as agricultural product etc.

taxpayer paing rent for comercial property to run his business.

so does RCM on rent applicable for such tax payer? Please explain.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

12 April 2025 As per Notification No. 09/2024-Integrated Tax (Rate) dated 8th October 2024, RCM shall be applicable to services by way of renting any property other than a residential dwelling provided by any unregistered person to any registered person.
So, if your landlord is charging GST under forward charge, RCM do not apply; otherwise yes...

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 September 2025 Good luck..

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