Reverse charge on commercial property

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This query is : Resolved

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This discussion clarifies GST implications for commercial property rentals. If a landlord's annual turnover exceeds the threshold (₹20 lakhs monthly rental means ₹2.4 crores annually), they must register for GST and charge it under the forward charge mechanism. The tenant's GST registration and willingness to pay under reverse charge do not exempt the landlord from this requirement, unlike specific cases like advocates or GTA services.

ashish thakur

ashish thakur (Querist)
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29 April 2025 Company A is providing rental services to company B. Agreed rental charges is Rs. 20 Lacs monthly and Company B is registered in GST. So Company A(landlord) is exempt for taking registration in forward charge? Company B will pay GST in reverse charge?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 April 2025 Company A (Landlord) must register under GST (since ₹20L/month = ₹2.4Cr/year, far above the threshold).

Company A should charge GST @18% (forward charge)

ashish thakur

ashish thakur (Querist)
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30 April 2025 Is it mandatory even if company B is ready to pay in RCM?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 April 2025 Yes, there would be query from department over registration of company A, when the aggregate services exceeds basic exemption limit.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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01 May 2025 Agree with the Expert's view , as your turnover is exceding 20 lacs. This case is separate from Supply being provided by Advocate & GTA , wherein entire Supply is covered under RCM.

ashish thakur

ashish thakur (Querist)
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05 May 2025 If there is GTA company and they are also providing warehouse facility then registration is required for GTA?

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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05 May 2025 For warehousing facility yes

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