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reverse charge on rent

27 May 2018

1) what is the charge reverse charge on rent
2) if rent owner registered or unregistered then what is the RCM apply in both service provider

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182500 Points)
Replied 27 May 2018

1. Reverse charge on rent for any non-residential usage of property is applicable provided the tenant is registered under GST, but not landlord/owner. (though the rule not applicable till 30.06.2018)

2. But when landlord/owner is registered under GST, he will directly charge GST over such rental supply, and hence RCM not applicable.

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TARUN DAS (170 Points)
Replied 27 May 2018

what is the threshold limit on rent per month for rcm

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182500 Points)
Replied 27 May 2018

No threshold limit under GST for monthly rent, (like same in IT act).

Under GST, only criteria is whether registered or unregistered dealer.......

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 27 May 2018

Yes, There is limit of 5000/- inward supplies from URD per day For RCM , But in case of Rent u cannot book it in daily basis so, if you are paying monthly rent more then 5000/- RCM is to be done .
Moreover RCM is deferred from from 13/10/2017 to 30/06/2018 .

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