GST ON RENTAL OF RESIDENTIAL DWELING UNIT ON RCM

GST (Goods and Services Tax) is applicable on residential property rentals, but with certain conditions.

Since both landlord and tenant are registered dealers, GST will apply.

However, the tax liability depends on the specific circumstances:

 1. If the property is rented for personal use (e.g., employees' residence), GST is not applicable.

2. If the property is rented for commercial use (e.g., office space), GST is applicable. 

Assuming the property is used for residential purposes, GST might not be applicable. 

However, if the tenant uses the property for commercial purposes, GST would apply.

Regarding FCM (Forward Charge Mechanism) and RCM (Reverse Charge Mechanism): 

1. FCM: Landlord is the supplier, and tenant is the recipient. Landlord charges GST, and tenant pays.

 2. RCM: Tenant is the recipient, and landlord is the supplier. Tenant pays GST, and landlord recovers.

In this case, since both parties are registered dealers, FCM would likely apply.

RCM is applicable in this case since tenant is registered. For residential property, registration of landlord is irrelevant.