We seek your advice on the following query.
We have Clients who are selling only Exempted commodities and, hence do not come under the GST payment gambit. With the RCM on Rent rule being incorporated, should we still pay this (RCM on rent) without any chance of adjusting against outward tax liability payment. If we pay this RCM payment, is there any chance of recovery or do we have an exemption to pay RCM on rent for this category of GST dealers
Businesses Dealing in Exempt Commodities Must Register for GST to Pay RCM on Rent Services A query was raised regarding the applicability of Reverse Charge Mechanism (RCM) on rent for businesses dealing exclusively in exempted commodities, which are not subject to Goods and Services Tax (GST). It was clarified that while such businesses are not required to register under GST, if they receive services subject to RCM, they must register and pay the RCM on rent. However, if they choose not to register, they are not liable for RCM. The discussion included agreement among participants on the interpretation of the GST provisions. (AI Summary)
TaxTMI 
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TaxTMI 
