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RCM ON RENT U/S 9(3)

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B GKAMATAR

TAX CONSULTANT

152 Points Posted on 03 July 2025

SIR.IAM COMPOSITION DEALER UNDER GST ACT.IAM LIABLE FOR RCM U/S9 (3) ON RENT PAID OR IT IS EXEMPTED. PLEASE EXPLAIN SIR

Replies (2)

Quick Summary

This discussion clarifies whether composition dealers under the GST Act are liable for Reverse Charge Mechanism (RCM) on rent paid under Section 9(3). The answer is no; composition dealers are exempt from RCM on rent. This exemption is supported by Notification No. 12/2017-Central Tax (Rate) and subsequent amendments.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 03 July 2025

As a composition dealer under the GST Act, you are not liable for RCM on rent paid under section 9(3) of the act.

Reference: Notification no:12/2017 of central tax (Rate) dt:28th June,2017 as amended by notification no.3/2019 central tax act (rate) dt: 29th March,2019.profides the exemption.