RCM applicability ON RENT COMMERCIAL PROPERTY

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43 Points Posted on 19 October 2020
is RCM applicable on commercial property rent.

landlord unregistered
tenant registered under GST
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On 19 October 2020 at 19:39 Report
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This discussion clarifies that Reverse Charge Mechanism (RCM) is generally not applicable to rent on commercial property, even if the landlord is unregistered and the tenant is GST registered. Recent amendments to the CGST Act specify that RCM under Section 9(4) primarily applies to notified goods or services procured by notified persons, with real estate developers currently being the main notified category. Therefore, for typical commercial property rent, RCM is not required.

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ca
66 Points Posted on 19 October 2020
Not applicable
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On 19 October 2020 at 20:42
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Student
23693 Points Posted on 19 October 2020
No...

RCM is not applicable on Rent of Commercial Property. After the CGST ( Amendment ) Act 2018, Section 9(4) i.e. RCM on Purchase from Unregistered Dealer has been made applicable only on Notified Goods or Services when procured by Notified Persons. As of now only Developers / Promoters ( Real Estate Sector ) are notified for RCM U/s 9(4) of the CGST Act 2017.

Hence no RCM required in your case since it is not a notified supply.
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On 19 October 2020 at 22:13

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