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

Reverse Charge Mechanism not applicable to commercial property rent; landlord's registration determines GST collection obligation. Renting of commercial property does not attract the Reverse Charge Mechanism; GST on such rent is governed by the forward charge regime and is the supplier's obligation. If the landlord is unregistered, the tenant is not liable under RCM and ordinarily no GST arises between the parties. However, where rental receipts cross the statutory registration threshold, the landlord should obtain registration and charge GST.