Regarding rcm on rent from Oct 2024

RCM on rent is payable by the service receiver who are registered on rent paid to service providers who are unregistered. The RCM paid on rent can be claimed in the same month.

GST on Rent GST on rent is applicable at 18% for commercial properties, while residential properties are exempt from GST.¹

The GST on rent is payable by the landlord, but in cases where the landlord is unregistered, the service receiver (tenant) is required to pay GST under the Reverse Charge Mechanism (RCM). Claiming ITC on RCM The service receiver can claim Input Tax Credit (ITC) on the RCM paid on rent in the same month. However, the ITC can only be claimed when there is an excess of input over output. If the input is less than the output, the ITC on RCM paid on rent will not be available. GST Calculation and Portal In the GST portal, the element of GST on rent will be calculated only when there is an excess of input over output. If there is input less and output more, the element of GST on rent will not be calculated.

 To ensure accurate

GST calculation and ITC claim, it's recommended to: - Verify the GST registration status of the landlord and tenant. -

Ensure accurate reporting of rent paid in GSTR-3B and GSTR-1. -

 Claim ITC on RCM paid on rent in the same month, if eligible.