GST on service of renting of residential dwelling w.e.f. 18-07-2022 Read more at: https://taxguru.in/goods-and-service-tax/gst-service-renting-residential-dwelling-w-e-f-18-0

[Bharat Cholleti]

Dear sir,

As per NNo.5/2022 CTR, A new service has been added 5AA in NNo.13/2017 " service by way of renting of residential dwelling to a registered person". my under standing is if a registered person receive the service of residential portion or house on rent is liable to pay tax@18% under Reverse charge. Is it correct. As a department how do they know these persons have taken residence ? As a registered person I have taken a shop which is a residential property and running the shop/offices do they liable to pay GST@18% from 18-7-2022. kindly clarify. Thx in advance.

[Amit Agrawal]

Please ignore my last post at serial number 20 above. It was meant for issue-id - 118124 with subject-line as 'residential dwelling RCM'.

My apology for the inconvenience!

AI Summary

Reverse charge on renting of residential dwelling: GST liability shifts to registered recipients, irrespective of supplier or end use.
Notification No. 05/2022 inserts Serial No. 5AA making services by way of renting of residential dwelling to a registered person taxable under reverse charge irrespective of supplier registration status or the end use of the dwelling; the exemption for renting for use as residence was amended to except supplies where the dwelling is rented to a registered person, while non residential premises rentals remain taxable under forward charge. Compliance consequences include recipient liability under RCM, possible compulsory registration, interstate registration concerns and time of supply/invoicing interactions around the amendment effective date.