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Rent for rcm

KAMLESH CHAUHAN (107 Points)

16 November 2024

Registering in GST e-commerce operator whose godown is taken as warehouse in amazon e-commerce operator does not pay rent but amazon pays then who is responsible for RCM

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4 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8722 Points)
Replied 17 November 2024

where the e-commerce operator (you) has a warehouse arrangement with Amazon, and Amazon pays the rent, the responsibility for Reverse Charge Mechanism (RCM) under GST would typically fall on the e-commerce operator (you).

As per GST regulations, the person liable to pay tax is the person who receives the supply (in this case, the e-commerce operator). Since you are the recipient of the warehouse services, you would be responsible for paying tax under RCM.

However, it's important to note that there might be specific contractual arrangements between you and Amazon that could affect the liability for RCM.

It's recommended that you review your contract with Amazon and consult with a tax professional or GST expert to ensure you understand your responsibilities and any potential liabilities.

Additionally, you may want to consider the following: -

Confirm with Amazon whether they are registered under GST and if they have obtained any exemptions or special provisions. -

Review your contract to see if there are any specific clauses related to tax payments, RCM, or GST. -

Consult with a tax professional or GST expert to ensure you are meeting all GST compliance requirements.

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8722 Points)
Replied 17 November 2024

where the e-commerce operator (you) has a warehouse arrangement with Amazon, and Amazon pays the rent, the responsibility for Reverse Charge Mechanism (RCM) under GST would typically fall on the e-commerce operator (you).

As per GST regulations, the person liable to pay tax is the person who receives the supply (in this case, the e-commerce operator). Since you are the recipient of the warehouse services, you would be responsible for paying tax under RCM.

However, it's important to note that there might be specific contractual arrangements between you and Amazon that could affect the liability for RCM.

It's recommended that you review your contract with Amazon and consult with a tax professional or GST expert to ensure you understand your responsibilities and any potential liabilities.

Additionally, you may want to consider the following: -

Confirm with Amazon whether they are registered under GST and if they have obtained any exemptions or special provisions. -

Review your contract to see if there are any specific clauses related to tax payments, RCM, or GST. -

Consult with a tax professional or GST expert to ensure you are meeting all GST compliance requirements.

MAYURESH (M.Com) (22 Points)
Replied 20 November 2024

Our Company paid rent through bank payment rupees 25000/-on the base of director approval monthly base.Employee provide agreement copy on notary. Is it liable gst(RCM)! Please help.

Shivani (Finance Professional) (8617 Points)
Replied 21 November 2024

RCM is applicable only if the rented property is used for commercial purposes.

Since the payment is Rs. 25,000/month, if the landlord is unregistered and the property is used commercially, GST under RCM applies.

Click here for - RCM on Commercial Rent: Key Rules and Applicability

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