RCM on rent recd from private limited company

[PRIYACHARAN SR]

GST Dealer(landlord) has given his property(apartment) on rent to a pvt ltd company (tenant)! however it is used by director for his residential purpose. Whether company(tenant) needs to pay gst under rcm. ? Kindly advise

[Padmanathan KV]

Yes. The company will have to pay GST under reverse charge on the rent paid.

[Amit Agrawal]

Assuming that the recipient of 'service by way of renting of residential dwelling' (i.e. Pvt. Ltd. Co.) is registered (or liable to be registered) under GST, such recipient needs to be pay GST under Reverse Charge Basis (irrespective of the fact that said recipient has allowed its director to use subject apartment for his own residential purpose).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

Yes liable under RCM

Exemption is available in case of renting to registered person only if the said property is used by such registered person for its personal purpose. i.e. say rented to proprietor who uses the property as his residence (personal purpose)

[Ganeshan Kalyani]

No doubt, RCM is applicable on this service.

AI Summary

Company Renting Apartment for Director Must Pay GST Under Reverse Charge Mechanism: Exemption Only for Personal Use A landlord has rented an apartment to a private limited company, which is used by the company's director for residential purposes. The discussion revolves around whether the company, as the tenant, is required to pay Goods and Services Tax (GST) under the reverse charge mechanism (RCM). The consensus among the forum participants is that the company must pay GST under RCM, as the exemption applies only when the property is rented to a registered person for personal use, such as a proprietor using it as a residence.