TaxTMI 
TaxTMI 
Hi, I am running a retail shop in a residence where ground floor has been converted into shop and on the first floor the landlord is living. He pays property tax in mixed category ie ground floor tax as commercial and first floor tax as residential tax.I have opted for composition scheme under GST. In light of new notification wherein composition dealers are exempted to pay RCM on renting of commercial property, am I liable to pay RCM. My interpretation is that I am on a commercial property, so I should not pay RCM as I am a composition dealer
RCM on rent
19 Jan 2025 
3 Replies 
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Reverse charge on renting of commercial property excludes composition dealers, so tenant under composition need not pay GST.
Renting of non-residential (commercial) property supplied by an unregistered person is generally taxable under reverse charge on the recipient, but a notification exempts persons who have opted for the composition scheme from that RCM obligation; accordingly a tenant registered under composition occupying a retail shop need not pay GST under RCM and an unregistered landlord will not charge GST on the rent. (AI Summary)
Renting of non-residential (commercial) property supplied by an unregistered person is generally taxable under reverse charge on the recipient, but a notification exempts persons who have opted for the composition scheme from that RCM obligation; accordingly a tenant registered under composition occupying a retail shop need not pay GST under RCM and an unregistered landlord will not charge GST on the rent. (AI Summary)