RCM on payent of rental charges of commercial premises paid to un-registered Dealer

RCM 595 views 2 replies
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17 Points Joined December 2017
We a regitered Dealer  have paid  on 7th January 2025  commercial rent charges to our Landlod who is an un registered Dealer
                 
1)  We have raised self Invoice for the transaction      
                 
2)  We shall discharge  this liability within 30 days by cash    
                 
3)  We shall be obliged by getting guidance where in GST return GSTR one and GSTR 3B this will have to be reported and way to  claim the ITC
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On 08 January 2025 at 21:31 Report
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Master in Accounts & high court Advocate
9605 Points Joined December 2011

Here's guidance on reporting and claiming ITC: Reporting in GSTR-1 1.

*Raise a self-invoice*: You've already done this.

 2. *Report the expense in GSTR-1*: - Table 4A: Report the rent expense under "Other expenses". - Provide the landlord's name, address, and the amount of rent paid. Reporting in GSTR-3B 1. *Report the rent expense in Table 3.1(d)*: "Other expenses" or "Rent". 2. *Claim ITC in Table 4A*:

"Eligible ITC". Claiming ITC 1. *ITC eligibility*: Ensure the rent expense is for business purposes and you have a valid tax invoice (self-invoice).

2. *Claim ITC in GSTR-3B*: Table 4A, "Eligible ITC".

3. *Maintain records*: Keep a record of the self-invoice, rent payment, and landlord's details. Important Notes 1. *Reverse Charge Mechanism (RCM)*: As the landlord is unregistered, you, as the registered dealer, are liable to pay GST under RCM. 2. *GST rate*: Apply the applicable GST rate (e.g., 18%) on the rent amount.

3. *Payment*: Discharge the liability within 30 days by cash, as mentioned. Consult a tax professional or chartered accountant to ensure accurate reporting and compliance with GST regulations.

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On 08 January 2025 at 22:02
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17 Points Joined December 2017
Dear Sir, Thanks for your promth guidance, Working on it. Thanks a lot for your looking into it. 
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On 09 January 2025 at 00:08

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