GST on Rent: Everything You Need to Know

 The 54th GST Council Meeting brought a significant change regarding the renting of commercial property. Under the revised guidelines, if an unregistered person rents out a commercial property to a registered person, the GST is levied under the Reverse Charge Mechanism (RCM). This change was introduced to curb revenue leakage and improve compliance.

Key Points to Note:

  1. Residential Dwelling to Registered Person:
    • Supplier: Any person (registered or unregistered).
    • Recipient: Registered (Regular or Composition).
    • GST: Applicable under RCM from 18/07/22.
  2. Commercial Property:
    • Supplier: Registered (Regular) or Unregistered Person.
    • Recipient: Registered Person (Regular or Composition).
    • GST: Under RCM/FCM, effective 10/10/24.

For Composition dealers, it's important to note that they cannot claim Input Tax Credit (ITC) under this mechanism.

Need help understanding how this impacts your business? Let Taxla Services guide you through the compliance process.

📞 Contact us today:
+91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

We're here to help you stay compliant with GST regulations!

#GSTOnRent #RCMExplained #TaxlaServices #GSTConsultants #StayCompliant #IncomeTaxPractitioners #ChennaiTaxExperts




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