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Gst on rent and security service

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NICSON JOHN

362 Points Posted on 28 March 2023

i am an accountant of a hospital.we are paying rent and security service charges to a party who has no gst registration...in this case should we pay gst to govt ?pls reply thanks in advance

Replies (5)

Quick Summary

A hospital accountant is seeking guidance on paying GST for rent and security services provided by a party without GST registration. The discussion clarifies that while GST on rent for non-residential property might not fall under Reverse Charge Mechanism (RCM), security services often do, especially if the supplier isn't a company and the hospital is GST-registered. The applicability of RCM for rent can depend on whether the property is residential and if the landlord is registered.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 28 March 2023

RCM is not applicable over rent for non-residential property, while Security services is under RCM.

So, for security services pay GST under RCM. Check the type of property for which rent paid for and decide.

NICSON JOHN

362 Points Posted on 28 March 2023

If landlord is a registered person..is RCM applicable?

Mukesh Sodhi

owner

76 Points Posted on 28 March 2023

No, but in that case he should have charged GST, wherever applicable.

sabyasachi mukherjee

Profession

19978 Points Posted on 28 March 2023

Rcm is applicable.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 29 March 2023

RCM is applicable on rent :
As per Notification 5/2022 CT rate : If hospital is situated at residential property & paying rent for the same.

RCM is applicable on Security :
As per Notification 29/2018 CT rate ', Security service supplier is not a company & you-hospital is registered in GST , RCM is applicable.