Reverse charge applicability on rental services

If the supplier of a Rental service is unregistered or has opted for the Composition scheme, but the recipient of such rental service is registered, does that rental supply come under Reverse charge mechanism and does that Recipient need to pay 18% tax under Reverse charge?

Replies (6)
For all commercial spaces that are on rent, GST will be applicable at 18% on the taxable value and rent would be treated as a taxable supply of service.

If a registered charitable trust or a religious trust owns and manages a religious place meant for the public, it is exempt from GST. This can happen only if:

The rent of these rooms is less than Rs. 1000 per day

The rent of shops and other spaces for business is  Rs 10,000 or less per month

The rent of community halls or any open area is Rs 10,000 or less per day
Rental expenses Not covered under rcm sec9(4) and sec9(5).
Rental Services not covered under RCM ( SECTION 9(3) ).
No RCM applicable , The council has not yet specified in this regard
Sir we are unregistered persons under Gst. We are about to enter into a rent agreement with a nationalised bank (48k pm÷2 co-owners). Is there any possibility that in future Under reverse charge mechanism the banker deduct Gst from present accepted rent. Is there any chance that in future RCM will affect unregistered persons like us.
No there is no possibility of banker deducting GST from present rent. If RCM is applicable in near future, Bank (Recipient) has to pay GST on rent from his own pocket.

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