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GST - RCM - for Commercial Building Rent

578 views 2 replies

Libissa

Accountant

337 Points Posted on 20 January 2026

I have taken hostel Franchise with Amigo and from Oct 25 collecting 5% GST without ITC - Rent below 7500/- - and i have takne the building lease with unregistered person MOnthly Rent Rs.200000 and decuting IT tDS - 20000 i want to know i want to pay RCM for Rent 2,00,000 - RCM AMount 18% - 36000 in GST or not and if i pay the RCM and can avail the RCM paid ITC and adjust the amount with OUtput Tax 5% - all other ITC Commisson , purchase are showning as ineligible ITC because collection 5% Tax Without ITC - Kinldy do the needful

Replies (2)

Quick Summary

RCM applies on Rs 2,00,000 rent from an unregistered landlord (Rs 36,000 GST). Since output GST is 5% without ITC, RCM ITC isn't available and becomes expense. If landlord is registered, RCM doesn't apply-GST charged forward, but ITC still restricted.

Aashok F C Advisory

Finance & Compliance Consultant | FP

362 Points Posted on 20 January 2026

You must pay ₹36,000 GST under RCM on ₹2,00,000 rent because landlord is unregistered. However, since you charge 5% GST without ITC, the RCM paid cannot be claimed as ITC and cannot be adjusted against output tax — it becomes a business expense.