Rent Paid By company but GSTR 3B Return Reverse Charges who will payable

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accountant
80 Points Joined May 2010
Dear Team

My Client is Milk and Curd Distributed by Hatsun Products. the Company Rent Paid to tenent. Tenent is unregistered person. but who will pay the reverse charge of rental expenses like tent or my client. please clarify my doubt
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On 09 March 2025 at 12:36 Report
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Master in Accounts & high court Advocate
9060 Points Joined December 2011

A question about Reverse Charge Mechanism (RCM) under GST. RCM on Rental Expenses: 1. *Notification No. 13/2017-Central Tax (Rate)*: This notification specifies the supplies that are liable to RCM. 2. *Rental Income*: Rental income from immovable property is exempt from GST, but the recipient of the service (your client) is liable to pay GST under RCM if the supplier (tenant) is an unregistered person. Liability to Pay GST: 1. *Recipient of Service*: Your client, as the recipient of the rental service, is liable to pay GST under RCM. 2. *GST Payment*: Your client must pay GST on the rental expenses, as the tenant is an unregistered person. Compliance Requirements: 1. *GST Registration*: Ensure your client has a valid GST registration. 2. *GST Returns*: Your client must report the rental expenses and GST paid under RCM in their GST returns (GSTR-3B and GSTR-1). 3. *GST Payment*: Your client must pay the GST liability under RCM by the due date to avoid interest and penalties. To ensure accurate interpretation and application of GST regulations, it's recommended to consult a tax professional or chartered accountant.

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On 09 March 2025 at 15:42


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