GST - RCM - for Commercial Building Rent

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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)

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.

What is incase when the landlord is registered tax payer?


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