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Notification 5/2022 GST

20 July 2022

we are paying room rent to our employees other than their salary.
Is this rent treated for paying GST RCM under recent notification 5/2022 GST as residential dewelling

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 20 July 2022

If tenant is registered under GST, then he has to pay GST under RCM for staying in residential dwelling .

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Rajkumar Gutti (591 Points)
Replied 20 July 2022

Here tenant is our our employee but rent paid by company & company is registered under gst

Kishor Lulla (993 Points)
Replied 21 July 2022

Yes. to pay rcm

Rajkumar Gutti (591 Points)
Replied 21 July 2022

First step is rent paid by employee to his landlord
Then company reimbursement rent to employee.
The said expenses is debited as Rent expenses in the company's books of account.
In above case can company is liable to pay gst on RCM basis. Company is registered under gst.

CA. ANKIT PANDYA (CA) (682 Points)
Replied 21 July 2022

Check the rent agreement. In whose name the rent agreement is executed. Is it between company & property owner or is it between employee (in his personal capacity) and property owner.

if company has executed rent agreement then RCM applicable.