RCM ON RENT.....TO COMPOSIT GST DEALER

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ATUL (Querist)
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20 December 2024 IF ANY...COMPOSIT DEALER....

PAY RENT 15000....IS GST APPLICABLE....

RENT RECEIPTS RECD..... ON WHICH....NO GST...CHARGED....

EXPLIAN IN DETAILES...IF POSSIBLE....

COMPOSITION DEALER........PAYING RENT..........REGISTERED IN GST..

OWNER..RECEVEING RENT.........UN-REGISTERED UNDER GST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 December 2024 As per Notification No. 09/2024 - Integrated Tax (Rate) dated 8th October, 2024, if a Composition Dealer (registered under GST) rents a commercial property from an unregistered landlord, the tenant (Composition Dealer) must pay GST under the Reverse Charge Mechanism (RCM). This means the responsibility of paying GST shifts from the unregistered landlord to the registered tenant. Composition dealers cannot claim Input Tax Credit (ITC) on the GST paid under RCM.

For details refer:: https://www.caclubindia.com/articles/rcm-on-properties-rented-from-unregistered-landlords-challenges-for-composition-taxpayers-and-some-relief-strategies-52803.asp?form=MG0AV3

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