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?

Thanks

AI Summary

Reverse charge on letting without consideration may apply where a related person provides commercial premises, per GST rules.
The discussion concluded that absence of consideration ordinarily precludes supply and GST liability, but Schedule I paragraph 2 can deem transfers between related persons without consideration to be supplies; consequently, permission to use commercial premises granted by a related person may be treated as a service or licence and attract reverse charge depending on relatedness and whether the act furthers business.