No RCM on Immovable Property if Tenant is Composition taxpayer [GST Notification]:

As recommended by GST Council Meeting, GST Notification has been issued to exclude taxpayers registered under composition levy scheme from reverse charge mechanism.

No RCM on immovable Property under Composition Scheme

CA Pratibha Goyal

Jan 17, 2025

Last update on Jan 17, 2025

No RCM on Immovable Property if Tenant is Composition taxpayer [GST Notification] There is good news for Taxpayers registered under the GST the composition scheme. As recommended by GST Council in it's 55th GST Meeting, GST Notification has been issued to exclude taxpayers registered under 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 person to registered person was brought under reverse charge mechanism. RCM was applicable on renting out immovable property (excluding residential accommodation) by unregistered persons to registered persons. Registered Taxpayers included those registered under the composition scheme who were now required to pay 18% GST under reverse charge and could not avail Input Tax Credit (ITC) of the same. Thus composition taxpayers are relieved from a major Tax cost. The notification is given below for reference:

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.