Rent

This query is : Resolved

Aryan (Querist)
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01 July 2017 Hello Everyone,

Do we have to Deposit GST under Reverse Charge Mechanism (RCM) in the case of
1) Rent given (office is in residential colony)
2) Rent given in for Commercial Place.

and both the Landlord does not have the registration of GST.

So, Do we have to deposit GST under RCM on Rent.

Thanks in Advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 July 2017 No reverse charge mechanism (GST council approval dt 19-5-2017) for RENT.

Aryan

Aryan (Querist)
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06 July 2017 But Sir If a Company is taking service from any Unregistered Person then we would have to pay on Reverse Charge (GST)
and Rent Service is a deemed Service

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2025 Hey! Let’s clarify the GST liability on rent payments under Reverse Charge Mechanism (RCM) when the landlord is unregistered.

Situation:
You (a company) are paying rent for:

Office located in a residential colony

Office located in a commercial place

The landlord does NOT have GST registration.

Question: Do you need to pay GST under RCM on such rent payments?

What the Law Says (as of 2017 & GST Council Updates):
Renting of Property Services under GST:

Renting of immovable property is a taxable supply under GST.

GST applies on renting commercial property, but renting residential property for residential use is exempt.

RCM Applicability:

Initially, RCM was notified on rent paid to unregistered persons (i.e., tenant paying GST on behalf of unregistered landlord).

But the GST Council (meeting dated 19-05-2017) exempted RCM on rent services.

So, as per latest clarification, no RCM on rent services even if landlord is unregistered.

But what about “deemed services”?

Rent is a service, but the Council excluded renting of immovable property from RCM list.

So, you do NOT have to pay GST under reverse charge on rent to unregistered landlord.

The landlord should register and pay GST, but if unregistered, you as tenant are NOT liable to pay GST under RCM.

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