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GST under RCM on rental property

RCM 277 views 2 replies
Government have specified the items and occasions where GST under RCM is payable. This list does not include rental payment in case the service is taken from unregistered person. So my question is whether GST under Reverse Charge Mechanism is payable in case of commercial property is taken on rent from unregistered person and if so under which provision ?
Replies (2)
RCM applicable. ....attracting section 9 regarding Payment by RD to URD

If you a RD pay rent to an URD , you are liable to pay the GST on your rent under RCM.

 

As per Sec 9(4) of CGST Act, if a registered person purchases goods/services from an unregistered dealer (URD) then the registered taxpayer is liable to pay GST on reverse charge basis. All the provisions of the Act will apply to such recipient as if he were the person liable for paying the tax in relation to the supply of goods or services.


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