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

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.