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Reverse gst charges for rent paid by r d to urd.

RCM 351 views 3 replies

Girish Moharir

3 Points Joined August 2017

We are a Pvt. Ltd. Co. managing a Hospital. Medical services have been excluded from GST. However it was mandatory for us to Register for GST . Hence we are a RD ( Registered Dealer ). We have Rental premises for our hospital from Individuals who are not required to be GST registered as their turn over is less than 20 lakhs.

1) Do we have to pay GST on the rent we pay them ? As reverse GST charges ?

2) Do we get this money back ? And how ?

Replies (3)

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

Your company give pure medical services then you don't want register under GST. As your position is URD then you don't pay Tax under RCM for the Rent...
If you are registered and the landlord is URD then you ll be pay Tax under RCM basis.
The rent is Rs 100000 you pay Tax @ 18% (18000). It ll be pay on time of transaction or time of payment....
Also you can adjust the tax amount as ITC. You don't have any liabilities then you can claim it as refund......