Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

GST on rent query

440 views

Save Share

Vijaykumar Chandrasekaran

48 Points Posted on 02 August 2022

I have a partnership firm registered under GST type Regular. I have my office rented in a residential complex (ground floor is my office, owner has 1st Floor & 2nd floor for residential purpose but my EB connection and all is commercial connection).

Apart from my office I have 2 godowns to store my goods, which again is a residential complex ground floor is my godown.

As I am registered GST tenant of these properties am I suppose to pay GST for my rent & do RCM for the same?

Thanks & Regards,

Vijay

Replies (4)

Quick Summary

A partnership firm registered under GST is seeking clarification on whether they need to pay GST on rent for their office and godowns located in residential complexes. They are unsure if Reverse Charge Mechanism (RCM) applies, especially since the properties are used for commercial purposes. The discussion touches upon recent notifications regarding GST on residential property rentals to registered persons.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 02 August 2022

In my opinion RCM should not apply in both cases as residential house property is being used for commercial purpose.

Vijaykumar Chandrasekaran

48 Points Posted on 02 August 2022

Thanks for the reply sir.

David

article Assistant

470 Points Posted on 02 August 2022

As per latest Notification, Service by way of renting of residential dwelling to registerd person covered under RCM. 18% GST is to be paid by RCM By a registered person