TaxTMI 
TaxTMI 
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?
GST on residentail premises given on rent
20 Jul 2022 
5 Replies 
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Reverse charge on rented residential premises places GST liability on the registered recipient, regardless of supplier registration.
Where a residential dwelling is rented to a registered person, GST liability falls on the registered recipient under the reverse charge mechanism regardless of the supplier's registration; the supplier must issue a tax invoice while the recipient pays GST, creating newly taxable scenarios previously exempt for residential use and raising questions about input tax credit eligibility for GST paid under RCM. (AI Summary)
Where a residential dwelling is rented to a registered person, GST liability falls on the registered recipient under the reverse charge mechanism regardless of the supplier's registration; the supplier must issue a tax invoice while the recipient pays GST, creating newly taxable scenarios previously exempt for residential use and raising questions about input tax credit eligibility for GST paid under RCM. (AI Summary)