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plz rply

mansi (teacher) (88 Points)

03 March 2019

hello, rental income received by state govt from renting an immovable property to vimal private ltd ( turnover of the company was 22 lakh in the preceding financial year) plz clarify who is liable to pay gst and why ? thanks

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12 Replies

Dharam (CA FINAL) (164 Points)
Replied 04 March 2019

as per section 9(3) and section 5(3) vimal pvt ltd is liable to pay gst under RCM

refer s.no. 5A of RCM TABLE

mansi (teacher) (88 Points)
Replied 04 March 2019

as per section 5 rcm is nt applicable in case of renting of immovable property .

Dharam (CA FINAL) (164 Points)
Replied 04 March 2019

Services supplied by the Central Government, State
Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017).

Central Government, State
Government, Union territory or local authority

Any person registered under the Central Goods and Services Tax Act, 2017.”

mansi (teacher) (88 Points)
Replied 04 March 2019

section 5 provides provision regarding business entity. and section 5 a provides provision regarding any person registered under the act

Dharam (CA FINAL) (164 Points)
Replied 04 March 2019

1. regarding section 5(3) please refer below mentioned notification

Notification No. 3/2018- Integrated Tax (Rate) dtd. 25-jan-2018

s.no. 6A of RCM table

2. regarding section 9(3) please refer below mentioned notification

Notification No. 3/2018- Central Tax (Rate) dtd. 25-jan-2018

s.no. 5A of RCM table

s.no. 5 is not related to renting of immovable property

mansi (teacher) (88 Points)
Replied 04 March 2019

there r two views regarding this question. i asked same question to two faculties. as per one faculty rcm is nt applicable on business entity, and another faculty says that rcm is applicable . i m confused which one is right..