Rcm on rent paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2018 Dear Experts,
I'm paying Rs. 6000/- PM office Rent to an unregistered dealer. Pls clarify from 01/06/2018. Whether I have to pay 18% GST on 6000 under RCM,

Thanks & Regards
Mukul Jain

Expert : Anonymous

Expert : Anonymous (Expert)

07 June 2018 Dear Mukul, RCM on supplies from unregistered dealers have till 30-06-2018. So for June RCM will not apply

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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20 July 2025 RCM Applicability on Rent Paid to Unregistered Dealer:
Yes, you have to pay GST under Reverse Charge Mechanism (RCM) if the rent you pay is for commercial property (like office rent).
The threshold limit for RCM on rent applies only if the monthly rent exceeds Rs. 5,000.
Since your rent is Rs. 6,000 per month, which is above Rs. 5,000, you must pay GST at 18% under RCM.
Important Points:
You will pay 18% GST on Rs. 6,000, i.e., Rs. 1,080 per month.
This GST is to be deposited by you (the recipient of service) under RCM.
You should raise a self-invoice for this RCM payment.
You can claim ITC on this GST paid under RCM, subject to usual conditions.

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