Residential Dwelling - RCM

[Ethirajan Parthasarathy]

Recently letting out residential dwelling to registered person is brought to GST under RCM.

In one case, an apartment is let out to business entity registered under GST.

The landlord is already charging GST under “forward charge”

Is it now required that landlord should stop charging GST and tenant should start paying GST under RCM

AI Summary

Debate Over GST on Residential Rentals to Businesses: Reverse Charge Mechanism vs. Forward Charge Post-18.7.2022 A discussion on a forum addresses whether GST should be charged under Reverse Charge Mechanism (RCM) or forward charge when a residential dwelling is rented to a business entity registered under GST. One participant argues that GST should be paid under RCM, while another contends that since the property is used as an office or commercial establishment, the landlord should continue charging GST under forward charge. Other participants express differing opinions, with some supporting the RCM application and others agreeing with the forward charge approach, highlighting the complexity and varying interpretations of the GST rules post-18.7.2022.