Is RCM on office rent applicable?

Yes, you have to deduct RCM on office rent. You are eligible for ITC.

Yes. RCM would be applicable @ 18%.

Yes, you will have to provide such details in GSTR 2.

Only self invoice and payment voucher number has to be mentioned in Document Table in GSTR1. Other details has to be entered in GSTR 2

Then you are not liable to deduct RCM. I assume it is RCM not TDS

Hi,

Yes, you will have to charge GST in reverse charge. Tax rate is 18%.

Yes, you need to declare this is GSTR 2. Further, you will also need to report payment voucher number and invoice number for the RCM transactions in GSTR 1.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

You'll have to provide the details in GSTR2 even then.

TDS for rent would not be applicable for you as the limit is Rs. 180000 per year. Your rent is within the kimits and out of the TDS ambit.

Yes RCM is Applicable @ 18% on Rent

please provide detail why you said not eligible for ITC

you have to declare RCM supplies in GSTR-1 by self invoicing then its auto populate in GSTR-2

1) If your owner is unregistered, then you have to pay GST on Rs. 8015 to the Government and claim ITC.

2) If your owner is registered, then you will pay him 8015+gst@18% to owner, and its will be reflected in GSTR 2.

You have to Pay GST on 8015 and claim such GST as Input thus no deduction from 8015 while payment made to landlord

in Tour Operator Business , as per my knowledge you have to two options either pay higher slab with claiming Input or pay lower slab without claiming input

yes RCM payment is mandatory even if not eligible for ITC

yes you can declare in GSTR 1 even if not declared in GSTR3B but you have to pay interest on late payment of Tax

No sir, In case of Tour opeator we cant claim ITC (Assuming you are going @5%).

In my opinion, in that case you have to go for the respective normal rates for your services you are offering. But, it is not so advisable

Yes, in case of 5%, ITC is not allowed.

Dear Tax Payer

Lets me clarify your doubts through the following questions;

1. Is your landlord registered under GST?

Ans: Yes. Then you dont have any liability to pay GST under RCM. Your landlord is supposed to raise his rent invoice along with GST.

Ans: No. Then Section 9(4) of the CGST Act, 2017 shall apply. The central tax in respect of the supply of taxable goods or services or both by a supplier,

who is not registered, to a registered person shall be paid by such person on reverse charge

basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is

the person liable for paying the tax in relation to the supply of such goods or services or both.

Hence, you have to pay GST @18% under RCM on Rs. 8015.

2. Is TDS (Income Tax) on Rent applicable?

No. As the total rental payment per annum is less than Rs. 1.8 lakhs, you do not have to deduct TDS under IT Act.

Regards,

CA. Rajeev P T

Hello,

The tax to be paid on RCM is 18% and has to be paid over and above the rent to the government. Since you are not eligible for ITC, it will be a cost to you. You can opt for 12% GST and claim ITC.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP