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GST applicabilty on Rent of a Commercial Property

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Sanju Das

22 Points Posted on 08 May 2024

Dear Sir,

Our Landlord is a charitable trust, was registered under GST before but now their GST status is showing suspended.

we are a registered LLP firm.

Our landlord gave us a tax invoice for Rent of a property without GST.

The property is a commercial property & it is using for commercial purpose.

are we required to pay gst on RCM or any other rules applicable to us?

Please suggest.

and if possible please refer the CBIC circular no.

Thanks & Regards..

Replies (2)

Quick Summary

This discussion clarifies GST applicability on commercial property rent when the landlord is a charitable trust with a suspended GST registration. It confirms that the tenant, a registered LLP, is not required to pay GST under the Reverse Charge Mechanism (RCM). The rent is to be paid without GST, as the landlord is responsible for GST under the forward charge mechanism, even if their registration is suspended.

Kishor Lulla

656 Points Posted on 08 May 2024

No provision of RCM for rented comm property. pay him rent without gst

CA Anoop Kumar Sharma

Accounts Manager

1470 Points Posted on 08 May 2024

As per GST Act provides that GST on commercial property rent is to be paid by the registered service provider( landlord). No (RCM) applicable for GST on commercial property rent. However, it's important to note that this absence of RCM doesn't exemption for commercial rent under GST via forward charge mechanism (FCM).