Composition Dealers no longer required to Pay RCM on renting of commercial property from Unregistered Persons:

Composition Dealers no longer required to Pay RCM on renting of commercial property from Unregistered Persons In its 55th meeting, the GST Council has decided that composition taxpayers under GST are no longer required to pay GST on a reverse charge basis on rented premises from unregistered persons. Relevant Text of GST Council Meeting Press Release: "The Council to exclude taxpayers registered under the composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-CTR dated 08.10.2024, vide which renting of any commercial/immovable property (other than residential dwelling) by unregistered persons to registered persons was brought under the reverse charge mechanism. Further, to regularize the period from the date when the notification No. 09/2024-CTR dated 08.10.2024 became effective, i.e., from 10.10.2024 till the date of issuance of the proposed notification on "as is where is" basis." In the 54th GST Council Meeting, the GST Council decided to bring the renting of commercial property by an unregistered person to a registered person under the Reverse Charge Mechanism (RCM) to prevent revenue leakage. The same was notified by inserting Entry Number 5AB in Notification Number 13/2017, by Notification No. 9/2024-Central Tax (Rate), dated 8-10-2024, w.e.f. 10-10-2024.