Dear Experts,
We are registered GST dealers.
We paid advance rent to unregistered person in July-24 for 6 months, for period from 1/7/24 to 31/12/24, for commercial property.
Now new RCM on rent is applicable wef 10/10/24, so do we have to pay RCM for rent from 10/10/24 to 31/12/24 now, on rent which was already paid in July-24.
Confusing scenario, please guide.
I understand your concern. The new RCM (Reverse Charge Mechanism) on rent applicable from 10/10/24 has created a confusing scenario for you. Since you've already paid advance rent to an unregistered person in July-24 for the period from 1/7/24 to 31/12/24, you're wondering if you need to pay RCM on rent from 10/10/24 to 31/12/24. Here's a suggested approach: 1. _Review the contract_: Check your rent agreement or contract to see if it mentions anything about tax implications or RCM. 2. _Consult a tax expert_: Reach out to a chartered accountant or tax consultant who can provide personalized guidance based on your specific situation. 3. _Contact the GST helpline_: Reach out to the GST helpline or the GST department's official website for clarification on this specific scenario. 4. _Assess the liability_: If RCM is applicable, calculate the liability for the period from 10/10/24 to 31/12/24. Remember, it's always best to seek professional advice to ensure compliance with GST regulations.
Reposted. As there is no satisfactory reply received yet.
Please guide.
Rent paid in July-24.Since the rent was paid in July-24, which is before the RCM applicability date, you don't need to pay RCM on that rent amount.
CAclubindia
