- New GST rule for businesses renting non-residential properties as of October 10, 2024
- Reverse Charge Mechanism applies when renting from unregistered supplier
- Affects commercial properties like offices, shops, warehouses, and industrial spaces
- Aim is to reduce revenue leakage and ensure tax compliance in commercial rental sector
- Registered recipient now responsible for paying GST directly to government
- Steps to comply include updating agreements, verifying supplier status, and adjusting bookkeeping
- Consult tax professionals to ensure compliance and avoid penalties
- Input Tax Credit can still be claimed under usual GST conditions
- Example: ABC Ltd. renting a warehouse from unregistered owner must pay GST and claim Input Tax Credit
- Businesses should review agreements and align accounting processes with new rule for compliance.
Source: rmpsco.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
