RCM on Rent Paid by Composition Dealers

is rcm on rent payable by composition dealers under RCM
Replies (2)
Quick Summary
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.

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.

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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