Hi,
Reverse Charge Mechanism (RCM) applies to some supplies under the Goods and Services Tax (GST) regime in India, including the provision of services by an unregistered person to a registered person.
When a landlord is not registered (i.e., not registered under GST) and a tenant is registered (i.e., registered under GST) with regard to residential rent, the RCM clause is applicable. In these situations, the tenant is obligated to pay the GST on the rent in accordance with RCM. It's crucial to keep in mind that RCM on residential rent is only applied if the tenant's monthly payment to the landlord exceeds Rs. 50,000. The RCM rule is not applicable if the amount of rent paid is less than Rs. 50,000.
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I hope this helps! Read More: Is RCM Applicable On Rent Under GST?
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What is RCM on rent?
A V L Srinivas
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2 Year
2023-09-20T08:51:30+00:00 2023-09-20T10:04:58+00:00Comment
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