Taxability of letting out commercial premises to registered person by an URP

[Rajat Gupta]

In light of the recent amendment vide notification no. 9/2024 CT(R) dated 08.10.2024, whether a registered person will be required to pay tax under RCM if the commercial property has been taken on consent i.e. without consideration? will there be different implications of this arrangement in cases where the property is owned by a related person?

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AI Summary

Debate on GST Taxability for Commercial Premises by Unregistered Person Without Consideration Under Section 7(1) Discussed A discussion on the taxability of letting out commercial premises by an unregistered person (URP) without consideration under the Goods and Services Tax (GST) framework. Participants debated whether such arrangements require tax payment under the Reverse Charge Mechanism (RCM), especially when the property is owned by a related person. It was noted that without consideration, it does not constitute a supply of services under Section 7[1] of the GST Act. However, if the property is provided by a related person, it may be liable to GST under RCM. The term 'furtherance of business' and its interpretation were also discussed.