As recommended by GST Council Meeting, GST Notification has been issued to exclude taxpayers registered under composition levy scheme from reverse charge mechanism.
CA Pratibha Goyal | Jan 17, 2025 |
![No RCM on Immovable Property if Tenant is Composition taxpayer [GST Notification]](/cdn-cgi/image/fit=contain,format=webp,gravity=auto,metadata=none,quality=80,width=1200,height=730/wp-content/uploads/2025/01/No-RCM-on-immovable-Property.jpg)
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:
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