GST on residentail premises given on rent

[Kaustubh Karandikar]

XYZ(Proprietor) is registered with GST. He had rented his residential premises to PQR Pvt. Ltd. where employees of PQR are staying but rent is paid by PQR to XYZ. PQR is also registered with GST. As per the amended provisions, whether XYZ is required to pay GST under forward charge or PQR is required to pay under reverse charge?

AI Summary

Reverse Charge Mechanism Applies to PQR for Employee Housing Rentals; GST and ITC Implications Discussed A discussion on a forum addressed the GST implications for residential premises rented by a registered proprietor, XYZ, to PQR Pvt. Ltd., where employees reside but rent is paid by PQR. The consensus among participants, including Amit Agrawal and others, is that under the amended GST provisions, PQR, as the registered recipient, must pay GST under the reverse charge mechanism (RCM), regardless of XYZ's registration status. The discussion also touched on the implications for input tax credit (ITC) eligibility and how the amendment affects previously exempt residential rental scenarios.