TaxTMI 
TaxTMI 
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
Rent collected from employees for renting out the residential quarters of factory will attract GST under RCM
13 Jul 2025 
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Renting residential dwelling to employees: GST reverse-charge applies where the employee is a registered person; exemption otherwise.
Services of renting of residential dwelling for use as residence are exempt from GST when the premises are used exclusively as a residence. However, if the recipient is a registered person the exemption does not apply and the liability may be attracted under the reverse charge mechanism, so determination depends on (a) the residential character of the quarters and (b) the employee's GST registration status. (AI Summary)
Services of renting of residential dwelling for use as residence are exempt from GST when the premises are used exclusively as a residence. However, if the recipient is a registered person the exemption does not apply and the liability may be attracted under the reverse charge mechanism, so determination depends on (a) the residential character of the quarters and (b) the employee's GST registration status. (AI Summary)