GST RCM applicability on renting of any property whether includes land lease from an unregistered person to a registered person as per latest notification and circulars.
Ref Not no: 9/2024
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GST RCM applicability on renting of any property whether includes land lease
Replies (6)
Quick Summary
Yes, the GST RCM provisions apply to renting of property, including land lease; when land owner is unregistered under GST while the tenant is registered person, and the land is utilized for any non agricultural use.
Thank you sir,
Sir just wanted to know from which Act, you are driving the defination of property in order to interpret the defination of property under GST Act?
Section 2(103) of the CGST Act, 2017: Defines "services" to include renting of property.
Section 7(1)(a) of the CGST Act, 2017: Includes renting of property in the scope of supply.
Schedule II, Entry 5 of the CGST Act, 2017: Specifies that renting of immovable property is a supply of services.
CBIC Notification No. 11/2017-Central Tax (Rate) dated June, 2017
CBIC Circular No. 151/ July /2023-GST dated July 2023
Dear sir,
Truly appreciate your efforts in resolving my concern.
Thank you for your prompt response.
Regards,
CA Yash Dhadiwal
Most welcome.
No, renting of land is not automatically covered by RCM merely because the landlord is unregistered. Notification No. 09/2024–Central Tax (Rate), dated 8 October 2024, inserted the RCM entry for renting of any property other than a residential dwelling, by an unregistered supplier to a registered recipient. It took effect from 10 October 2024. “Renting” is broad enough to include a lease of non-residential land; the entry is not limited to buildings. The registered recipient pays GST under RCM, subject to the applicable classification, rate and any specific exemption.
The separate residential-dwelling entry applies where a residential dwelling is rented to a registered person, with an exception where the registered recipient is a proprietor who rents it in a personal capacity for use as their own residence. Check the lease’s actual use and the recipient’s status; the 2024 amendment does not make every land transaction taxable as rent. A transfer of land, for example, is distinct from a lease.
For lease and property workflows, correctly classifying the property, recipient and transaction determines whether RCM applies. Manual tracking of leases, invoices and GST treatment is difficult; automation can reduce repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. WhatsApp us to explore the workflow: https://wa.me/message/3HVOZ7HIY4ESC1
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