GST APPLICABLE ON COMMERCIAL PROPERTY AS RCM

[vinod nambiar]

Sir,

we have registered on gst and occupy a commercial property in lease.landlord is unregistered.

is there any liabililty in rent as RCM

THANKS

[VENU K]

RCM is not applicable for renting of commercial property. The entire GST is to be discharged on forward charge basis as far as renting of commercial property is concerned. So if the landlord is not registered there is no GST liability on either  the landlord or the  tenant.

[Shilpi Jain]

Renting of commercial property by an unregistered person (not Govt. or LA) not liable under RCM.

[Padmanathan KV]

No, the said activity is not taxable as RCM. But if the Rent exceeds Rs.20 Lakhs in a year, it is wise to intimate the landlord to take registration and charge GST.

AI Summary

GST Reverse Charge Mechanism Not Applicable for Renting from Unregistered Landlords; Consider GST Registration for Rent Over Rs. 20 Lakhs. A forum participant inquired about the applicability of the Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for renting commercial property from an unregistered landlord. Three responses clarified that RCM does not apply to such situations. Instead, GST should be handled on a forward charge basis, meaning there is no GST liability for either party if the landlord is unregistered. However, one respondent advised that if the annual rent exceeds Rs. 20 Lakhs, the landlord should consider registering for GST and charging it accordingly.