RCM for Commercial Property Rentals: A New Provision in GST
RCM for Commercial Property Rentals: A New Provision in GST Understanding the Implications of Notification No. 09/2024 The Indian government has introduced a significant change to the Goods and Services Tax (GST) regime with the issuance of Notification No. 09/2024. This notification mandates the implementation of Reverse Charge Mechanism (RCM) for the renting of commercial property by any unregistered person to a registered person. What is Reverse Charge Mechanism (RCM)? RCM is a mechanism under GST where the recipient of the supply is liable to pay the tax instead of the supplier. In the context of commercial property rentals, it means that the registered person renting the property will be responsible for paying the GST on the rental amount. Key Points of the Notification * Effective Date: The RCM for commercial property rentals will come into force on October 10, 2024. * Scope: The notification applies to all cases where an unregistered person (such as an individual or a small bu