RCM on Rent Paid by Composition Dealers

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1 Points Posted on 09 January 2025
is rcm on rent payable by composition dealers under RCM
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On 09 January 2025 at 22:21 Report
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Composition dealers registered under Section 10 of the GST Act are generally required to pay Reverse Charge Mechanism (RCM) on rent received from unregistered landlords. However, they cannot claim Input Tax Credit (ITC) on this payment, making it an additional business cost. Recent decisions from the GST Council aim to exclude composition taxpayers from paying RCM on commercial rent from unregistered suppliers, so keep an eye on these updates.

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Profession
22 Points Posted on 10 January 2025

Yes, In case the tenant is a Composition dealer registered u/s 10, and the landlord is Unregistered, Composition dealer is required to pay under RCM. Also he cannot claim ITC on the same. It becomes the cost of establishment.

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On 10 January 2025 at 13:15
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M Com FCS LLB M-AIMA
14046 Points Posted on 11 January 2025

recently the GST council meeting it was decided to exclude composition tax payers from payment of RCM on commercial rent from unregistered suppliers.

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On 11 January 2025 at 17:16

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