ALL TAX Solutions - ATS

Notification No.09/2024 - Central Tax (Rate)

Impacts of RCM on Renting of any property other than residential dwelling

If the tenant is Unregistered and the owner is also Unregistered under GST then GST is not applicable (Neither RCM nor FCM)

If the tenant is Unregistered and the owner is Registered under GST then GST is applicable on FCM basis

If the tenant is Registered and the owner is also Registered under GST then GST is applicable on FCM basis

If the tenant is Registered and the owner is Unregistered under GST then GST is applicable on RCM basis

If the tenant is Registered under GST as Composition tax payer then RCM liability will become an extra expense for him because he is not eligible for ITC

Applicable from 10th October 2024 onwards

RCM on Commercial Rent has biggest impact

In short for registered tax payers, rent on commercial property is always taxable, either under RCM or FCM as the case may be

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