Renting of immovable property

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This query is : Resolved

MD YUSUF NAGARIYA (Querist)

21 August 2017 I am a registered dealer under gst. I pay rent Rs 20000 monthly of my place of business to a person who is not registered. whether RCM shall attract or not. according to me RCM will not attract as gst council has specified 12 services in which RCM shall attract and renting is not mentioned in that list. kindly clarify whether I'm correct or not

RAJA P M

RAJA P M (Expert)

21 August 2017 You are not Correct... Rent paid is RCM applicable.... You ll be check the notification it's contain "who ll be pay Tax and who is pay under RCM related tax payments"

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 October 2021 The reverse charge mechanism rules have been amended and below highlights the applicability of the new rules from Feb, 1 2019:

-As per the new provisions, instead of coverage of all the registered person, now, the Government shall specify the class of the registered person who shall be liable to pay tax under reverse charge basis
Note: After the introduction of the new provisions of section 9(4) till now, the Government has neither specified the class of registered person to whom to provisions are applicable nor has provided the specified categories of a taxable supply of goods or services or both.

Hence RCM not applicable in your case.

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