GST Applicability in case of Renting of Property
This article is related to GST Applicability in case of Renting of Property. To remove the confusion about applicability of RCM or FCM on Renting of property we have analyse every situation related to Renting of residential property and Renting of Commercial property.
| Renting of Residential Property used for Residential Purposes | |||
| Supplier | Recipient | RCM/FCM | Reference |
| Registered | Registered | Exempt if it is for own residence purpose
RCM is applicable if use as the residence of others | Entry No. 6AA of RCM Notification notified through Notification No. 05/2022- Integrated Tax (Rate) dated 13-07-2022. Effective From 18-07-2022 |
| Registered | Unregistered | Exempt | Entry No. 13 of Notification No. 09/2017-IGST dated 28.06.2027 |
| Unregistered | Registered | Exempt if it is for own residence purpose
RCM is applicable if use as the residence of others | Entry No. 6AA of RCM Notification notified through Notification No. 05/2022- Integrated Tax (Rate) dated 13-07-2022.
Effective From 18-07-2022 |
| Unregistered | Unregistered | No GST | Entry No. 13 of Notification No. 09/2017-IGST dated 28.06.2017 |
| Renting of Residential Property used for Commercial Purposes | ||
| Supplier | Recipient | RCM/FCM |
| Registered | Registered | RCM |
| Registered | Unregistered | FCM |
| Unregistered | Registered | RCM |
| Unregistered | Unregistered | No GST |
| Renting of Commercial Property | |||
| Supplier | Recipient | RCM/FCM | Reference |
| Registered | Registered | FCM | Note: As it is Taxable services and not covered under Notification No 13/2017-CTR related to RCM services, Hence covered under FCM. |
| Registered | Unregistered | FCM | Note: As it is Taxable services and not covered under Notification No 13/2017-CTR related to RCM services, Hence covered under FCM. |
| Unregistered | Registered | RCM (from 10-10-2024) | Entry No. 6AB of RCM Notification notified through Notification No. 09/2024-Integrated Tax (Rate) dated 08-10-2024 |
| Unregistered | Unregistered | No GST | |
| Renting of any Immovable Property other than Residential Dwelling (Effective from 16-01-2025) | |||
| Supplier | Recipient | RCM/FCM | Reference |
| Unregistered person (Subject to registration limit) | Composition taxpayers | FCM | Notification No 07/2025-Central Tax (Rate) (Entry No 5AB of NN-13/2017-CTR- dated 28-06-2017) |
| Unregistered person | Other than Composition taxpayers | RCM | Notification No 07/2025-Central Tax (Rate) (Entry No 5AB of NN-13/2017-CTR- dated 28-06-2017) |
It also regularized the tax position from 10-10-2024 to 15-01-2025, meaning no refunds even if RCM was paid by composition taxpayers during that period | |||
