Rent collected from employees for renting out the residential quarters of factory will attract GST under RCM

[Venkata K]

Dear Sir 

we are collecting rent of Rs. 3500/- for one residential quarters located near factory to our employees whether Registered dealer has to remit GST under RCM 

 

AI Summary

Company renting residential quarters to employees questions GST liability under Reverse Charge Mechanism for monthly rent collection A company collects Rs. 3,500 monthly rent from employees for residential quarters near their factory and inquires about GST liability under Reverse Charge Mechanism (RCM). One expert cites Notification No. 12/2017-CTR Entry 12, which exempts residential dwelling rentals from GST except when rented to registered persons. The expert concludes no RCM applies since the property is exclusively residential. Another expert clarifies that RCM only applies if the employee is GST-registered. The original querist responds seeking clarification about whether industrial quarters rented for residential purposes to registered employees would still fall under RCM, indicating uncertainty about the intersection of property type, usage purpose, and tenant registration status in determining GST obligations.