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Sec.2 (93 ) of CGST Act

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Rajkumar Gutti

884 Points Posted on 13 February 2024

An employee take dwelling house for his own use .He paid rent Rs.20000/- PM.

Same rent reimbursed by corporate body company separately, other than regular salary.

As per sec.2(93 ) of CGST Act company acting as an principal agent and it is construed that supply is made to company.

Hence rent paid by employee to landlord , which is reimbursed by co.is liable to pay RCM GST.

Here there is no any contractual agreement between employee and employer for rent.

Is my information is correct

Replies (3)

Quick Summary

This discussion examines whether rent paid by an employee for their dwelling, and subsequently reimbursed by their employer, is subject to Reverse Charge Mechanism (RCM) GST under Section 2(93) of the CGST Act. The core question is whether the employer, by reimbursing the rent, is acting as a principal and the employee as an agent, thus construing a supply to the company. Experts are sought for their views on the GST implications, particularly concerning the lack of a direct contractual agreement for rent between the employee and employer.

Rajkumar Gutti

884 Points Posted on 14 February 2024

But sir , rent paid is debited to rent exp.there is no contractual agreement between employee and employer for rent. Company pay rent to employee indirectly company is recipient and sec.2 (93) says that company is acting as an agent.