RCM ON RENT FACTORY / SHOP/ HOME

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) under GST for rented properties. It explores scenarios involving factories, shops, and residential homes, particularly when rent is paid to a registered person. The consensus is that RCM generally does not apply to commercial properties rented by a GST-registered individual. However, RCM is applicable to residential properties rented by a registered person since July 2022, even if the property is used for residential purposes and no business expenses are claimed.