RCM on Rent Paid to landlords related to residential building used by the employees of the company

[Ashok G U]

Respected colleagues, We are a registered tax payer under GST. A private limited company engaged in manufacture business. We are paying rents to various unregistered landlords towards use of residential purpose buildings. These buildings are used by the employees of the company for their residential dwelling purposes.

Does the company is liable to pay GST under RCM as required by the Notification No Notification no. 05/2022-Central Tax (Rate) dated 13th July 2022?

If Yes, can the company claim the ITC of such taxes paid under RCM?

Thank you for the guidance.

AI Summary

GST Reverse Charge on Unregistered Landlord Rent: Navigating Compliance and Input Tax Credit for Employee Housing Facilities A manufacturing company seeks guidance on GST reverse charge mechanism (RCM) for rent paid to unregistered landlords for employee residential buildings. The key queries involve potential GST liability under Notification 05/2022 and the possibility of input tax credit (ITC) for taxes paid under RCM for such residential premises used by employees.