Gst on rental income by composition taxpayer

my client is registeed under compositions taxpayer , and having rental income tenant is registered as a normal taxpayer , so who will be going to pay tax on rental income
Replies (1)

As per GST regulations, for rental income: Tax Liability: - *Normal Taxpayer (Tenant)*: The tenant, being a normal taxpayer, is required to pay GST on reverse charge basis (RCM) for renting a property from an unregistered or composition scheme supplier. - *Composition Taxpayer (Landlord)*: Since your client is registered under the composition scheme, they are not required to charge GST on the rental income. However, the tenant will still be liable to pay GST on RCM basis. Key Points: - *RCM Applicability*: RCM is applicable on renting of property, and the tenant is required to pay GST on reverse charge basis. - *Composition Scheme Limitations*: As a composition taxpayer, your client is not required to charge GST, but this does not exempt the tenant from paying GST on RCM basis. Action Item: Advise the tenant to pay GST on RCM basis for the rental income, as they are a normal taxpayer and the landlord is under the composition scheme.

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