SELF INVOICE FIRMAT OF RENT

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7059 Points Joined January 2017
A Registred Tax Payer Paid Monthly Rent Unregistered Building Owner ₹ 15000.If GST Applicable?.How mutch percentage?.Who paid the GST to Government?.Please send the details and Sample Format of Invoice
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On 18 April 2025 at 07:33 Report
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Master in Accounts & high court Advocate
8827 Points Joined December 2011

GST Applicability on Rent Paid to Unregistered Building Owner - *

GST applicability*: GST is applicable on rent paid to an unregistered building owner under the Reverse Charge Mechanism (RCM). -

*GST rate*: The GST rate for renting of immovable property is 18% (9% CGST + 9% SGST). GST Calculation -

*Rent amount*: ₹15,000 - *GST amount*: ₹2,700 (18% of ₹15,000) GST Payment -

 *Recipient liable*: The registered tax payer (recipient) is liable to pay GST under RCM. - *GST payment*: The recipient needs to pay ₹2,700 (₹1,350 CGST + ₹1,350 SGST) to the government.

Sample Invoice Format - *Invoice details*: - *Invoice number*: RN001 - *Date*: [Current date] - *Bill to*: [Unregistered building owner's name and address] -

*Descripttion*: Rent for [month/year] - *Amount*: ₹15,000 - *GST details*: - *GSTIN*: Not applicable (since the owner is unregistered) - *GST amount*: ₹2,700 (₹1,350 CGST + ₹1,350 SGST)

Accounting Entry - *Debit*: Rent expense (₹15,000) - *Debit*: GST payable (₹2,700) - *Credit*: Cash/Bank (₹17,700) By following these guidelines, the registered tax payer can correctly account for GST on rent paid to an unregistered building owner.

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On 20 April 2025 at 16:07


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